Massachusetts Home Sales Down in August for Second Month in a Row as Median Prices Continued to Climb

Condo median prices over $300k for first time

WALTHAM, MA – September 28, 2010 – (RealEstateRama) — The Massachusetts Association of REALTORS® (MAR) reported today that single-family home sales in August went down for the second month in a row compared to the year before.  Single-family year-over-year median prices went up for the 10th straight month as condominium median prices crossed the $300,000 threshold for the first time since MAR has been tracking median prices.

“It is obvious at this point that the momentum from the tax credit has not been sustained through the middle of the summer,” said 2010 MAR President Kevin Sears, broker/co-owner of Sears Real Estate in Springfield.  “While the market conditions still favor the buyer – with historically low interest rates, increasing inventory and more affordable pricing- we may have to wait until the natural supply of buyers builds back up.”

“With median prices continuing to climb year over year and sales slightly increasing from July to August, the market is slowly starting to move in a more positive direction,” said 2010 MAR President Kevin Sears, broker/co-owner of Sears Real Estate in Springfield.  “While questions about the economy and unemployment remain, the record low interest rates continue to benefit those consumers who are in the market to buy a home now.  We can’t forget about the long-term value of homeownership and the importance for buyers to follow a timeline that is right for them; regardless of the market.”

There were 3,311 detached single-family homes sold this August, an 18.4 percent decrease from the 4,058 homes sold the same time last year.  This is second straight month of year-over-year decreases.  On a month-to-month basis, home sales were up 3.1 percent from 3,211 homes sold this past July.

The median selling price for single-family homes in August was $330,000 an increase of 4.8 percent compared to $315,000 in August 2009.  This is the 10th straight month of year-over-year price increases.  On a month-to-month basis, the August median selling price was down less than one percent from $333,000 in July 2010.  This is the first month-to-month decrease since March 2010.

The August condominium market was down 21.2 percent compared to the same time last year (from 1,749 units sold in 2009 to 1,379 units sold in 2010).  Similar to single-family sales, this is the second straight month of year-over-year decreases.  On a month-to-month basis, condominium sales were up 13.2 percent compared to the 1,218 units sold this past July.

Condominium median selling prices in August were up 9.2 percent from $279,000 in 2009 to $304,700 in August 2010.  This is the fourth straight month of year-over-year increases.  On a month-to-month basis, the median selling price of a condominium was up 6.5 percent from a July 2010 median of $286,000.  This is the first time that the median price for condominium has gone over $300,000 since the association has tracked median prices.

Inventory and Days on Market:
The inventory of single-family homes as of August 31, 2010 increased 12.0 percent from August 2009 (28,251 listings in 2009 to 31,560 listings in 2010) which translates into 9.5 months of supply in August 2010.  This is up from 7.0 months of supply last year and down from 9.9 months in July 2010.  This was the sixth straight month of inventory gains and the second straight month of double-digit increases.  Despite the increases, August 2010 is off 12,368 homes compared to the all-time August high of 43,928 homes for sale in 2006.

The inventory of condominiums on the market in August was up 2.0 percent compared to the year before (11,440 listings in 2009 to 11,654 listings in 2010), which translates into 8.5 months of supply, which is up from 6.5 months in August 2009 and down from 9.8 months this past July.  This is the second straight month of year-over-year gains.  August 2010 is off 9,153 units compared to the all-time August high of 20,807 units for sale in 2006.

Detached single-family homes stayed on the market an average of 113 days in August 2010 compared to an average of 123 days in August 2009.  This is the 13th straight month of days on market declines compared to the year before. Condos stayed on the market an average of 118 days, down from an average of 140 days in August 2009. On a month-to-month basis, days on market for single-family homes were up from 110 days and condos were down from 126 days in July.

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.