FOR IMMEDIATE RELEASE
Editorial Contacts:
Katie Curnutte
The Warren Group
(617) 896-5370
kcurnutte@thewarrengroup.com
Home Prices in March See Biggest Drop Since
Lowest Point of Early-90s Housing Crisis;
Quarterly Home Sales in Mass. Reach 17-Year Low,
According to The Warren Group
Condo Sales Drop Substantially, but Prices Remain Relatively Steady
BOSTON, April 28, 2008 – The median price of single-family homes in Massachusetts fell more than 10 percent in March, the second-steepest price drop since The Warren Group began recording prices in 1987. The last time prices declined by more than 10 percent was in December 1990, the nadir of the early-1990s housing crisis, according to a report released today by The Warren Group, publisher of Banker & Tradesman.
Sales of single-family homes fell below 7,000 during the first quarter – the first time this has happened during any quarter since 1991.
“The BayState’s housing market is looking a lot like it did at the end of 1990, when December prices fell 11 percent compared to the same month the year before,” said Timothy Warren Jr., CEO of The Warren Group. “That was the low point of the 90s housing crisis; afterwards, prices began to fall by smaller percentages and by 1993, they were level. But that downturn was fueled by the banking failures in the 1980s, while this one has more to do with the staggering number of foreclosures facing Massachusetts homeowners. Those foreclosures have not let up; in fact, nearly 9,000 BayState homeowners were faced with the possibility during the first quarter of this year. It might be a while before we pull out of the current housing slump.”
The median price of single-family homes fell 10.6 percent from $340,000 in March 2007 to $304,000 this past March. The median price during the first quarter fell 8 percent, from $337,000 to $310,000.
Single-family home sales in March fell 31.6 percent, from 3,853 last year to 2,637 this year. Home sales in the first quarter declined 27 percent, from 9,434 to 6,891.
“Foreclosures are still running rampant and causing a glut of homes to hit the market,” Warren said. “To top that off, news of the economy has not been good, and potential homebuyers are gun-shy. For those who are trying to buy, lending standards are stricter than they have been in years, so without a sizeable down payment and excellent credit, many people are finding it difficult to get a mortgage.”
Condominium prices in Massachusetts are staying considerably steadier than single-family home prices. In March, the median price of condos fell 1.8 percent, from $275,000 to $270,000. During the first quarter, the price fell 3.8 percent, from $274,950 to $264,500.
Condo sales fell 35.6 percent in March, from 2,269 to 1,462. First quarter sales were down 32.6 percent, from 5,692 to 3,835.
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.