The Boston Globe reports the condo boom is ending. "Sales of multifamily properties in Massachusetts dropped 15 percent last year, ending a four-year run of rising sales and signaling that the market for condominiums converted from duplexes, triple-deckers, and four-families has peaked."

"Sales were fueled by contractors' converting them to condos, investors' buying them as long-term holdings, and homebuyers who would rent the spare units to help pay the mortgage. But last year, multifamily sales declined to 7,980, the MAR said yesterday. 'There's been a tremendous amount of condo conversion, especially in recent years,' said (realtor) Arthur Foley in Quincy. 'The market's getting saturated with condos.'"

"Builders, small developers, and investors rushed to buy two- and three-families in Somerville, Quincy, Waltham, Dorchester, Worcester, and other communities. They could purchase the properties relatively cheaply and renovate and resell them as condos for far more than they paid for the properties."

"Multifamily sales in Greater Boston decreased 7.6 percent last year. Declines were worse in other regions: 24.1 percent less in northeastern Massachusetts and 19.3 percent less on the South Shore. In some markets, rising mortgage interest rates caused condo prices to flatten or drop."

"Paul Campano, an agent who works in in East Boston and Somerville said sales of converted condos have probably peaked. 'If you want to buy a Somerville condo and you're going to be there four or five years, I wouldn't worry. But if you buy and may have to move in a year or two, I'd have some concern,' he said."

"A record 379 condos are for sale in Dorchester, Ken Osherow said, and investors are scrambling to sell their units because they now realize overbuilding caused a glut. 'Would you invest in a three-family and convert it right now?' Osherow said. 'Probably not.'"