Editorial Contacts:

Aglaia Pikounis                                                                        

The Warren Group

(617) 896-5370                                                             

apikounis@thewarrengroup.com

Bay State Home Sales Post Worst

First Half in 17 Years

Condo Sales Take A Dive, Prices Stay Flat

BOSTON, July 28, 2008 – Single-family home sales in Massachusetts plunged to the lowest level in more than 15 years during the first half of 2008, according to a report released today by The Warren Group, publisher of Banker & Tradesman. Prices also dropped 9 percent during the first two quarters.  

Sales of single-family homes plummeted 19.1 percent from 22,851 recorded from January through June of 2007 to 18,487 during the same months in 2008. It was the fewest sales for the six-month period since 1991. The median price for single-family homes sold through June 2008 fell 9.2 percent to $315,000 from $347,000 during the same period a year earlier. The price was the lowest for the first two quarters since 2003.

“What’s clear from these numbers is we haven’t reached the bottom of the market yet. The slumping market is continuing. Tighter lending standards and the availability of credit are big factors in the decline, as is eroding consumer confidence.” said Timothy Warren Jr., CEO of The Warren Group. “The rash of bad news about bank failures and Fannie Mae’s and Freddie Mac’s capital needs convinces us that a turnaround isn’t going to happen this year.”

June home sales fell 14.9 percent to 4,663 from 5,479 in June 2007, and the median price for the month declined 8.6 percent to $329,000 from $360,000. June home sales were the lowest for that month since 1991.

Condominium sales have fallen substantially in 2008, with nearly 30 percent fewer sales recorded so far this year compared to 2007. Year-to-date sales sunk 28.3 percent to 9,844 from 13,733. Condo prices have remained relatively flat, with the median slipping a modest 1.1 percent to $277,000 for condos sold in the first half of 2008 from $280,000 a year earlier.

“The slump in condo sales is even worse than in the single-family sector. Condo prices haven’t retreated as much as single-family home prices and so condo units aren’t moving,” Warren said.

Monthly condo sales fell 23.3 percent from 2,982 in June 2007 to 2,288 in June 2008. The median condo price in June climbed slightly, 1 percent to $295,000 from $292,000 a year ago.

 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.

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