WALTHAM, MA – October 27, 2009 – (RealEstateRama) — The Massachusetts Association of REALTORS® (MAR) reported today that single-family home sales increased for the third straight month compared to the same time last year. Median prices were down only 1.7 percent compared to September 2008, while condominium median prices were up 1.7 percent. For the fourth month in a row, the number of pending sales (homes put under agreement in September) was up seven percent from the same time last year.
“We really feel that the past three months of positive home sales are a result of the $8,000 tax credit and its impending expiration date,” said MAR President Gary Rogers, a broker with RE/MAX First Realty in Waltham. “Despite this bump, we are concerned that it will take longer and be more difficult for the market to stabilize without extending the Federal tax credit for homebuyers past the December 1 deadline.”
There were 3,433 detached single-family homes sold this September, a 4.6 percent increase from the 3,282 homes sold the same time last year. On a month-to-month basis, home sales were down 15.4 percent from 4,058 homes sold this past August. A significant decrease in single-family sales from August to September is typical.
The median selling price for single-family homes in September was $290,000, a decrease of 1.7 percent compared to $295,000 in September 2008. In addition, the September median price was up 15 percent from the 2009 low of $252,500 in February. On a month-to-month basis, the September median selling price was down 7.9 percent from $315,000 in August 2009. Similar to sales, median prices typically experience an August-to-September drop.
The September condominium market was up 12.2 percent compared to the same time last year (from 1,300 units sold in 2008 to 1,459 units sold in 2009). On a month-to-month basis, condominium sales were down 16.5 percent compared to the 1,748 units sold this past August. A month-to-month decrease in sales in typical from August to September.
Condominium median selling prices in September were up 1.7 percent from $255,000 in 2008 to $259,450 in 2009. The September median price was up $55,450 (27 percent) from the 2009 low of $204,000 January. On a month-to-month basis, the median selling price of a condominium was down 7.0 percent from a August median of $279,000.
Pending Sales:
The number of single-family homes put under agreement in September was up 7.0 percent compared to the same time last year (4,130 homes in 2008 to 4,400 homes in 2009). On a month-to-month basis, single-family homes put under agreement were down 3.7 percent from 4,570 homes in August.
The number of condos put under agreement in September was up three percent compared to September 2008 (1,676 units in 2008 to 1,725 units in 2009). On a month-to-month basis, condos put under agreement were down 2.5 percent from 1,770 units in August. 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 September 30, 2009 decreased 13 percent compared to the same time last year (from 46,598 listings in 2008 to 40,313 listings in 2009). At the current sales pace, this represents approximately 6.9 months of supply, down from 10.2 months of supply in September 2008. On a month-to-month basis, the average months of supply is essentially flat from 6.8 months in August. It is considered a balanced market when there are between 7.5 and 8.5 months of supply.
The inventory of single-family homes also decreased 12.0 percent from September 2008 (32,757 listings in 2008 to 28,676 listings in 2009) which translates into 7.1 months of supply in September 2009. This is down from 10.0 months of supply last year and essentially the same as 7.0 months in August. September supply is at its lowest since September 2002. The September peak was 43,227 homes in 2006. This is the 18th straight month that inventory has gone down compared to the year before.
The condominium market saw September inventory decrease by 16 percent from last year (13,841 listings in 2008 to 11,637 listings in 2009), which translates into 6.7 months of supply, which is down from 10.6 months in September 2008 and up slightly from 6.5 months this past August. This is the 18th straight month that inventory has gone down compared to the year before.
“Inventory levels continue to be something we’re keeping our eyes on,” said Rogers. “With 18 months of year-over-year decreases, it is becoming more difficult for buyers to find homes in communities they want. If the tax credit is expanded to include non-first-time homebuyers, we should see sellers move back into the market.”
Detached single-family homes stayed on the market an average of 124 days in September 2009 compared to an average of 134 days in September 2008, while condos stayed on the market an average of 136 days, down from an average of 143 days in September 2008. On a month-to-month basis, days on market for single-family homes were up from 123 days and condos were down from 140 days in August.
Quarterly Information:
The number of single-family homes sold in the third quarter of 2009 was up 5.6 percent compared to the same time last year (11,238 homes sold in 2008 to 11,863 homes sold in 2009). Median selling prices were down 4.1 percent from $318,000 in 2008 to $305,000 in 2009.
The condominium market experienced an increase of 2.3 percent in the number of units sold in the third quarter compared to the same quarter last year with 4,914 units sold in 2008 to 5,025 units sold in 2009. Median selling prices were down 2.5 percent from $280,000 in 2008 to $273,000 in 2009.
Quarterly Regional Sales Data:
Regionally, every part of the state saw an increase in sales of single-family homes compared to the same quarter last year, except for Cape Cod, which experienced a decrease 1.8 percent (850 homes sold in 2008 compared to 835 homes sold in 2009). Of the seven regions, Central Massachusetts experienced the largest increase in sales at 7.2 percent with 1,712 homes sold in Q3 2008 compared to 1,835 homes sold in Q3 2009.
All regions of the state continued to have decreases in median sale prices. The Greater Boston region experienced the smallest drop in median prices in Q3 with a decrease of only 1.1 percent over the same time last year from $465,000 in Q3 2008 to $460,000 in Q3 2009. The Southeast had the largest decrease in median prices at 6.3 percent from $240,000 in 2008 to $225,000 in 2009.
In the condo market, the Northeast region had the largest increase in sales, with a an 8.8 percent jump compared to the same quarter last year with 833 units sold in 2008 to 906 units sold in 2009. The Western region had the largest decrease in condo sales at 15.6 percent, going from 256 units sold in Q3 2008 to 216 units sold in Q3 2009.
Cape Cod was the only region to experience an increase in median prices with a 0.9 percent increase over the same time last year (from $235,000 in Q3 2008 to $237,000 in Q3 2009). The South Shore region experienced the biggest drop in median prices, with a significant 8.4 percent drop compared to the same quarter last year (from $226,250 in 2008 to $207,250 in 2009).
Multi-Family Sales:
The multi-family housing market experienced an 8.1 percent decrease in the third quarter of 2009 compared to the same time last year with 1,830 multi-family homes sold in 2008 to 1,682 in 2009. Median prices were down 1.6 percent compared to the same time last year from $212,500 in 2008 to $209,000 in 2009. For multi-family regional data go to www.marealtor.com.
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
