FOR IMMEDIATE RELEASE
Editorial Contacts:
Katie Curnutte
The Warren Group
(617) 896-5370
kcurnutte@thewarrengroup.com
Massachusetts Home Sales Fall Dramatically
For Second Month in a Row;
Prices Continue Steady Decline,
According to The Warren Group
September and October See Biggest Sales Declines in Past Year
BOSTON, Nov. 27, 2007 – Single-family home sales in October dropped by a double-digit percentage for the second month in a row, after a couple months of nearly flat sales. The median home price also continued to fall, when compared to the same time period in 2006, according to a report released today by The Warren Group, publisher of Banker & Tradesman.
Single-family home sales dropped 17.1 percent from 4,399 in October 2006 to 3,646 in October of this year. That followed an 18.7 percent decline in September. But in July and August, sales stayed steady with an increase of 1.5 percent and a decrease of 1.5 percent, respectively.
Year-to-date single-family home sales are down 7 percent at the end of October from 46,797 during the first 10 months of 2006 to 43,535 this year.
The median price for single-family homes in October fell by the largest percentage so far this year, according to TWG’s traditional method of calculating prices. The median price dropped 6.5 percent from $310,000 in October 2006 to $290,000 this year. The last time prices fell by more than 6.5 percent was in December 2006, when they declined 8.1 percent.
The year-to-date median price for single-family homes fell 4.4 percent from $329,000 last year to $314,482 this year.
Because of the rapidly rising rate of foreclosures, The Warren Group has opted to also calculate data that excludes the effects of foreclosures deeds. Using this method, the median price of single-family homes has fallen 0.6 percent year-to-date from $337,500 to $335,000. October’s median price, when calculated with this method, fell 2.3 percent from $324,000 to $315,000.
Condominium sales also fell substantially in October. Sales were down 16 percent from 2,230 in October 2006 to 1,874 this October. Year-to-date sales fell 7 percent from 25,640 to 23,856.
The median price of condos, when calculated by TWG’s traditional method, fell 1.5 percent in October from $261,000 to $257,100. The year-to-date price is down 2.2 percent from $276,000 to $270,000.
When the effect of foreclosures is eliminated, condo prices in Massachusetts rose 3 percent in October from $266,500 last year to $274,400 this year. The year-to-date price stayed flat at $280,000 each year.
“After the dramatic drop-off of sales in September, we saw what we expected to see in October,” said Timothy Warren Jr., CEO of The Warren Group. “Sales of both single-family homes and condominiums plunged again, probably because of the ongoing effects of July’s credit crisis. Prices – especially when the effects of foreclosures are removed – are staying relatively steady, which is good news for the market. But that could change if sales don’t bounce back in the coming months.”
In SuffolkCounty, sales of single-family homes fell 40.4 percent in October from 136 to 81, while year-to-date sales fell 12.9 percent from 1,423 to 1,240. The median price there – calculated traditionally – fell 14.4 percent during the month from $325,950 to $279,000, and fell 6.4 percent year-to-date from $355,000 to $332,250. Condo sales in SuffolkCounty were down 9.7 percent in October from 485 to 438. Year-to-date sales fell 1.9 percent from 6,019 to 5,903. The median price of condos stayed flat in October at $320,000, while the year-to-date price decreased 1.9 percent from $338,812 to $332,500.
In EssexCounty, single-family home sales during October fell 15.9 percent from 453 to 381, while year-to-date sales are down 3.5 percent from 4,833 to 4,665. The median price of single-family homes fell 0.3 percent in October from $350,000 last year to $349,000 this year. The year-to-date price is down 3.9 percent from $359,000 to $345,000. Condo sales there fell 25.5 percent in October from 279 to 208, and year-to-date sales are down 13.5 percent from 3,018 to 2,611. The median price of condos in EssexCounty rose 0.8 percent in October from $234,000 to $235,750, while the year-to-date median price fell 4.2 percent from $240,050 to $230,000.
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.
Median Home Sale Prices, Jan. 2006-Oct. 2007