FOR IMMEDIATE RELEASE
Editorial Contacts:
Katie Curnutte
The Warren Group
(617) 896-5370
kcurnutte@thewarrengroup.com
Mass. Home Prices See Biggest Monthly Drop in 20 Years;
Decline in Prices Rivals Early-90s Housing Slump,
According to The Warren Group
April Sales Decline Less Dramatic Than in Recent Months
BOSTON, May 27, 2008 – The median price of single-family homes fell even further in April, with the month recording the steepest decline since The Warren Group began recording prices in 1987. Sales continued to fall in April, but less dramatically than in recent months, according to a report released today by The Warren Group, publisher of Banker & Tradesman.
“In the early 1990s – during the last big housing slump – prices fell in 42 of 48 months,” said Timothy Warren Jr., CEO of The Warren Group. “Since March 2006, when prices first started to fall in this current slump, there have been price declines in 20 of the 26 months. But the early 90s price declines weren’t as dramatic as the drops we’re seeing now. Let’s hope that these lower prices bring buyers back to the market so this slump will have a shorter duration than the 48 months we endured in the 1990s.”
The median price of single-family homes fell 12 percent in April from $346,750 in April 2007 to $305,000 this year. The last time the median price fell below $305,000 during April was in 2003. Year-to-date prices declined 8.8 percent from $340,000 during the first four months of 2007 to $310,000 this year.
Single-family home sales declined 12 percent in April from 3,654 to 3,215. Year-to-date sales fell 22.8 percent from 13,088 to 10,111.
“Single-family home sales are still falling, but this was the smallest decline we’ve seen in eight months,” Warren said. “It remains to be seen if this was a one-month fluke and sales will go back to the 20-30 percent declines we’ve been seeing, or if they will start to stabilize. The spring and summer are critical times for the housing market, so the next few months will set the tone for 2008.”
Condominium prices fared better in April, falling only 1.8 percent from $274,950 to $270,000. Year-to-date condo prices were down 3.6 percent from $274,950 to $265,000. Condo sales fell 22.2 percent in April from 2,204 last year to 1,714. Year-to-date condo sales declined 29.7 percent from 7,896 last year to 5,549.
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.
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