August home sales at 2008 levels
WALTHAM, MA – September 29, 2009 – (RealEstateRama) — The Massachusetts Association of REALTORS® (MAR) reported today that the number of pending sales (homes put under agreement in August) was up 6.0 percent from the same time last year – the third straight month of year-over-year gains. Sales of single-family homes were virtually the same compared to August of last year (up 0.4 percent), while condominium sales were down 3.5 percent. Median prices continue to be at their highest point in 2009.
“With both home sales and pending sales up in August and prices at their highest point so far in 2009, we are seeing signs that the market is improving,” said MAR President Gary Rogers, a broker at RE/MAX First Realty in Waltham. “There is also a good possibility that there could be a rush of activity in October as the days remaining to take advantage of the $8,000 first-time homebuyer tax credit continue to tick away.”
There were 4,055 detached single-family homes sold this August, a 0.4 percent increase from the 4,039 homes sold the same time last year. On a month-to-month basis, home sales were down 9.1 percent from 4,463 homes sold this past July.
The median selling price for single-family homes in August was $315,000, a decrease of 3.1 percent compared to $325,000 in August 2008. This was the highest median price since August 2008. In addition, the August median price is up 25 percent from the 2009 low of $252,500 in February. On a month-to-month basis, the August median selling price was up 1.6 percent from $310,000 in July 2009. This is the sixth straight month of month-to-month increases. The August median selling price continues to be back to more affordable 2003/2004 levels.
The condominium market experienced a decrease of 9.1 percent in the number of units sold this August compared to the same time last year (from 1,811 units sold in 2008 to 1,748 units sold in 2009). On a month-to-month basis, condominium sales were down 4.0 percent compared to the 1,820 units sold this past August.
Condominium median selling prices in July were down 4.6 percent from $292,450 in 2008 to $279,000 in 2009. This was the highest median price since August 2008. The August median price was up 37 percent from the 2009 low of $204,000 in January. On a month-to-month basis, the August median selling price was up 1.5 percent from $275,000 in July 2009.
Pending Sales:
The number of single-family homes put under agreement in August was up 6.0 percent compared to the same time last year (4,298 homes in 2008 to 4,570 homes in 2009). This was the third straight monthly year-over-year increase in pending sales and the largest single-month increase in 2009. On a month-to-month basis, single-family homes put under agreement were down 8.0 percent from 4,966 homes in July.
The number of condos put under agreement in August was up 1.0 percent compared to August 2008 (1,750 units in 2008 to 1,770 units in 2009). This is the second straight month of monthly year-over-year increases for condos in 2009. On a month-to-month basis, condos put under agreement were down 12.6 percent from 2,025 units in July. Pending sales or sales “under agreement” are homes that have a signed purchase and sale agreement, but have yet to close and be recorded.
Inventory and Days on Market:
The inventory of residential properties on the market as of August 31, 2009 decreased 16 percent compared to the same time last year (from 47,245 listings in 2008 to 39,691 listings in 2009). At the current sales pace, this represents approximately 6.8 months of supply, down from 8.1 months of supply in August 2008. On a month-to-month basis, the average months of supply was up from 6.4 months in July. 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 16.0 percent from August 2008 33,531 listings in 2008 to 28,251 listings in 2009) which translates into 7.0 months of supply in August 2009. This was down from 8.3 months of supply last year and up from 6.4 months of supply in July. This was the fewest single-family home listings since August 2004 and it is the 17th straight month that inventory has gone down compared to the year before.
The condominium market saw August inventory decrease by 17 percent from last year (13,714 listings in 2008 to 11,440 listings in 2009), which translates into 6.5 months of supply, down from 7.6 months in 2008 and the virtually the same as this past July (6.4 months). This was the fewest August condominium listings since August 2004 and the 17th straight month that inventory has gone down compared to the year before.
Detached single-family homes stayed on the market an average of 123 days in August 2009, which was down from an average of 130 days compared to the same time last year, while condos stayed on the market an average of 140 days, up from an average of 136 days in August 2008. On a month-to-month basis, days on market for single-family homes was down form 129 days and condos were up from 133 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 19,000 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.
