Massachusetts Home Sales Down Again in February

Condominium sales experiences first January-to-February sales gain since MAR started tracking monthly data in 1996

WALTHAM, MA, – March 26, 2009 – (RealEstateRama) — The Massachusetts Association of REALTORS® (MAR) reported today that single-family home sales were down 11.4 percent in February compared to the same time last year, while condominium sales were down 16.4 percent.  The median price for a single-family home was $252,500 and the median price for a condominium in February was $213,250.

“We continue to be hopeful that sales will increase in the coming months as buyers take advantage of the combination of low prices, low interest rates and the $8,000 federal first-time homebuyer tax credit that expires on December 1, 2009,” said MAR President Gary Rogers, a broker at RE/MAX First Realty in Waltham.  “Members have been seeing an increase in open house attendance over the past weeks and this is something that should continue through the spring, especially if the economy starts to improve.”

There were 1,645 detached single-family homes sold this February, an 11.4 percent decrease from the 1,857 homes sold the same time last year. On a month-to-month basis, home sales were only down 5.4 percent from 1,738 homes sold this past January.  Single-family home sales historically go down from January to February.

The median selling price for single-family homes in February was $252,500, a decrease of 18.5 percent compared to $310,000 in February 2008. On a month-to-month basis, the February median selling price was down 4.0 percent from $263,000 in January 2009.  The February median selling price continues to be back to 2002 levels.

The condominium market experienced a 16.4 percent decrease in the number of units sold this February compared to the same time last year (from 827 units sold in 2008 to 691 units sold in 2009).  However, on a month-to-month basis, condominium sales were up 9.9 percent compared to the 629 units sold this past January.  This is the first January-to-February increase the condominium market has experienced since MAR started tracking this data in 1996.

Condominium median selling prices in February were down 15.4 percent from $252,000 in 2008 to $213,250 in 2009.  On a month-to-month basis, the median selling price of a condominium was up 4.5 percent from a January median of $204,000.
The February median selling price for condominiums is back to 2000 levels.

“The condo market is another example of price driving activity.  Prices are at a point where buyers have the incentive they need to get back into the market.  As a result, demand for desirable units is most likely what has caused median prices to tick up,” said Rogers.

Inventory and Days on Market:
The inventory of residential properties on the market as of February 28, 2009 decreased 18 percent compared to the same time last year (from 44,526 listings in 2008 to 36,345 listings in 2009).  At the current sales pace, this represents approximately 15.6 months of supply, a decrease from 16.6 months of supply in February 2008.  On a month-to-month basis, the average months of supply is up from 15.0 months in January.  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 February 2008 (30,048 listings in 2008 to 25,317 listings in 2009) which translates into 15.4 months of supply in February 2009.  This is down from 16.2 months of supply last year (which was the highest months of supply numbers since MAR began tracking it in 2001) and up from 14.3 months of supply in January.  This is the 11th straight month that inventory has gone down compared to the year before and is at its 3rd lowest level since February 2005.

The condominium market saw February inventory decrease by 24 percent from last year (14,478 listings in 2008 to 11,028 listings in 2009), which translates into 16.0 months of supply, down from 17.6 months in 2008 (which was also a high since MAR began tracking months of supply in 2001) and down from 16.9 months this past January.  This is the 11th straight month that inventory has gone down compared to the year before and it is the 3rd lowest level since December 2004.

Detached single-family homes stayed on the market an average of 153 days in February 2009 compared to an average of 166 days in February 2008, while condos stayed on the market an average of 187 days, up from an average of 165 days in February 2008.  On a month-to-month basis, days on market for single-family homes were up from 146 days and condos were up from 179 days in January.

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.