April Median Prices Showed Slight Signs of Improvement as Massachusetts Home Sales Down

WALTHAM, Mass. – May 25, 2009 – (RealEstateRama) — The Massachusetts Association of REALTORS® (MAR) reported today that median home prices for single-family homes and condominiums showed slight signs of improvement in April.  While median prices were down 12.5 percent for single-family homes and 14.2 percent for condos, it is the smallest annual price decrease since October 2008 and November 2008 respectively.  On a month-to-month basis single-family median prices were up 7.8 percent from March, the largest month-to-month increase since MAR has been tracking monthly median prices. Single-family home sales were down 13 percent in April compared to the same time last year, while condominium sales were down 28.8 percent.

“On a year-over-year basis, median prices are still feeling the weight of the market correction that has been taking place over the past 20 months,” said MAR President Gary Rogers, a broker at RE/MAX First Realty in Waltham.  “However, it is encouraging to see month-to-month median prices going up, as it is reflective of the increased activity REALTORS® are seeing today as buyers are looking to get back into the market.”

There were 2,448 detached single-family homes sold this April, a 13 percent decrease from the 2,814 homes sold the same time last year. On a month-to-month basis, home sales were up 9.6 percent from 2,234 homes sold this past March.

The median selling price for single-family homes in April was $275,000, a decrease of 12.5 percent compared to $314,450 in April 2008.  This is the smallest annual monthly decrease since October 2008. On a month-to-month basis, the April median selling price was up 7.8 percent from $255,000 in March 2009.  This is the largest month-to-month increase since MAR has been tracking median prices.  The April median selling price continues to be back to 2002 levels.

The condominium market experienced a significant 28.8 percent decrease in the number of units sold this April compared to the same time last year (from 1,286 units sold in 2008 to 916 units sold in 2009).  However, on a month-to-month basis, condominium sales were up 4.4 percent compared to the 877 units sold this past March.  This is the third straight month of month-to-month increases.

Condominium median selling prices in April were down 14.2 percent from $275,000 in 2008 to $236,000 in 2009.  On a month-to-month basis, the median selling price of a condominium was up 5.1 percent from a March median of $224,500.  The April median selling price for condominiums is back to August 2003 levels.

Pending Sales:
The number of homes that went under agreement in April was up 20.7 percent over March “pending sales”.  The number of condos under agreement went up 23.9 percent compared to March.   Pending sales are homes that have gone under agreement, but have yet to close and be recorded.* [please see note at bottom of release]

Inventory and Days on Market:

The inventory of residential properties on the market as of April 30, 2009 decreased 18 percent compared to the same time last year (from 49,641 listings in 2008 to 40,864 listings in 2009).  At the current sales pace, this represents approximately 12.1 months of supply, equal to the 12.1 months of supply in April 2008.  On a month-to-month basis, the average months of supply is down from 12.3 months in March.  It is considered a balanced market when there are between 7.5 and 8.5 months of supply.

The inventory of single-family homes decreased 17.0 percent from April 2008 (34,067 listings in 2008 to 28,404 listings in 2009) which translates into 11.6 months of supply in April 2009.  This is down from 12.2 months of supply last year and down from 12.0 months of supply in March.  This is the 13th straight month that inventory has gone down compared to the year before.

The condominium market saw April inventory decrease by 20 percent from last year (15,574 listings in 2008 to 12,460 listings in 2009), which translates into 13.6 months of supply, up from 12.1 months in 2008 and up from 13.3 months this past March.  This is the 13th straight month that inventory has gone down compared to the year before.

Detached single-family homes stayed on the market an average of 155 days in April 2009 compared to an average of 166 days in April 2008, while condos stayed on the market an average of 140 days, down from an average of 162 days in April 2008.  On a month-to-month basis, days on market for single-family homes were down from 156 days and condos were down from 158 days in March.<

About the Massachusetts Association of REALTORS®:
Organized in 1924, the Massachusetts Association of REALTORS® is a professional trade organization with more than 20,000 members.  The term REALTOR® is registered as the exclusive designation of members of the National Association of REALTORS® who subscribe to a strict code of ethics and enjoy continuing education programs.

* In cooperation with our Multiple Listing Services, MAR now is able to report “pending sales”, which we hope you will find useful to track more current status of the housing market.