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Mass. Home Sales Climb In September,
But Prices Post Sharp Decline
Third Quarter Sales Hit 17-Year-Low
BOSTON, October 27, 2008 – The Bay State housing market got a bounce in September, with single-family home sales jumping 8.5 percent compared to a year earlier. It was the first increase in monthly home sales, year-over-year, in 11 months, according to The Warren Group.
Single-family home sales rose to 3,637 in September from 3,352 in September 2007. Despite the increase, year-to-date sales are off by double-digit percentages. A total of 30,983 homes were sold from January through September, 14.3 percent lower than a year earlier when 36,130 homes were sold.
The median home price in September sank 15.6 percent to $287,500 from $340,750 a year earlier. It was the first time the median home price has dipped below $300,000 since April 2003. The year-to-date median home price fell 10 percent to $315,000 from $350,000.
“A gain in the number of single-family home sales in September is certainly encouraging news. Combined with the decline in the median prices it indicates that the market is moving again as homeowners are becoming realistic about pricing,” said Timothy Warren, CEO of The Warren Group, publisher of Banker & Tradesman. “However, significant problems remain for the real estate market and we cannot be sure that the data we saw in September will become a new trend that leads to a recovery of the housing market. Foreclosures, tight mortgage lending standards, job loss and a recession are all going to exert downward pressure on both median prices and the number of sales.”
Sales of single-family homes in Massachusetts also tumbled in the third quarter to the lowest sales pace for the three-month period since 1991, while the quarterly median home price hit a six-year low.
There were 12,476 single-family home sales from July through September, a 6 percent decline from 13,279 during the same months in 2007. The median home price for the third quarter fell 12.4 percent to $311,000 from $355,000 in third quarter 2007 and was the lowest price recorded for a third quarter since 2002.
Unlike single-family homes, condo sales continued to decline in September, though not as steeply as in prior months. September condo sales fell 9.6 percent to 1,634 from 1,808 last year. Monthly condo sales have been declining by double-digit percentages for the last 11 months. Year-to-date condo sales plunged 24 percent to 16,008 from 21,062.
The decline in third-quarter condo sales was steeper than single-family home sales. Condo sales retreated 15.8 percent to 6,169 sales from July through September from 7,329 a year earlier.
Condo prices have experienced more moderate declines than the single-family home sector. The median condo price in September slid 4.7 percent to $265,000 from $278,000. Year-to-date the median condo price dipped 1.1 percent to $280,000 from $283,000.
About The Warren Group
The Warren Group, based in Boston, is the publisher of Banker & Tradesman, The Commercial Record and a series of association publications. As the premier provider of real estate data in New England, The Warren Group offers a range of real estate products and services for professionals and consumers searching for real estate and financial information. For more information about The Warren Group, please visit www.thewarrengroup.com or call 617-428-5100.