Massachusetts Single-Family Home Sales Down in March as Prices Up Slightly from February

First quarter sales down for single-family and condos while multi-family sales increase over 50%

WALTHAM, MA – April 29, 2009 – (RealEstateRama) — The Massachusetts Association of REALTORS® (MAR) reported today that single-family home sales were down 4.7 percent in March compared to the same time last year, while condominium sales were down 19.8 percent.  Median prices were up from February for both single-family homes and condos.  However, the year-over-year median price for a single-family home was down 19 percent and condominiums prices were down 14.9 percent compared to March 2008.

In the first quarter of 2009, single-family home sales were down 9.3 percent while condominium sales were down 20.9 percent compared to the same quarter last year.

“Despite consumer uncertainty in the economy, the spring home buying season has brought a traditional influx of homebuyers, which is positive,” said MAR President Gary Rogers, a broker with RE/MAX First Realty in Waltham.  “With the drop in prices, conditions still favor the buyer, especially the first-time homebuyer, and we do expect they will continue to respond well to the first-time homebuyer tax credit that was signed into law by President Obama in February.”

There were 2,234 detached single-family homes sold this March, a 4.7 percent decrease from the 2,344 homes sold the same time last year.  On a month-to-month basis, home sales were up 35.6 percent from 1,647 homes sold this past February.  A double digit percent increase from February to March is typical.

The median selling price for single-family homes in March was $255,000, a decrease of 19 percent compared to $315,000 in March 2008.  Median prices for single-family homes continue to be back at 2002 levels.  On a month-to-month basis, the March median selling price was up 1.0 percent from the February 2009 median of $252,500.

The condominium market experienced a 19.8 percent decrease in the number of units sold this March, compared to the same time last year (from 1,093 units sold in 2008 to 877 units sold in 2009).  On a month-to-month basis, condominium sales were up 26.9 percent compared to 691 units sold this past February.  Similar to single-family home sales, a double digit percent increase from February to March is typical.

Condominium median selling prices in March were down 14.9 percent from $263,750 in 2008 to $224,500 in 2008.  Compared to this past February, the median selling price of a condominium is up 5.3 percent (from $213,250).

Inventory and Days on Market:
The inventory of residential properties on the market as of March 31, 2009 decreased 21 percent compared to the same time last year (from 48,704 listings in 2008 to 38,400 listings in 2009).  At the current sales pace, this represents approximately 12.3 months of supply, a decrease from 14.2 months of supply in March 2008.  On a month-to-month basis, the average months of supply is down from 15.6 months in February 2009.  It is considered a balanced market when there are between 7.5 and 8.5 months of supply.

“When well-priced homes come on the market they are selling fairly quickly.  Unfortunately, we are seeing a shortage of those types of marketable properties,” said Rogers.

The inventory of single-family homes decreased 19 percent from March 2008 (32,869 listings in 2008 to 26,700 listings in 2009) which translates into 12.0 months of supply in March 2009.  This is down from 14.1 months of supply last year and down from 15.4 months of supply in February 2009.

The condominium market saw March inventory decrease by 26 percent from last year (15,835 listings in 2008 to 11,700 listings in 2009), which translates into 13.3 months of supply, down from 14.5 months in March 2008 and down from 16.0 months this past February.

Detached single-family homes stayed on the market an average of 156 days in March 2000 compared to an average of 162 days in March 2008, while condos stayed on the market an average of 158 days, up from an average of 168 days in March 2008.  On a month-to-month basis, days on market for single-family homes were up from 153 days and condos were down significantly from 187 days in February.

Quarterly Information:
The number of single-family homes sold in the first quarter of 2009 was down 9.3 percent compared to the same time last year (6,183 homes sold in 2008 to 5,610 homes sold in 2009).  Median selling prices were down 18.7 percent from $315,000 in 2008 to $256,000 in 2009.
The condominium market experienced a drop of 21.5 percent in the number of units sold in the first quarter compared to the same quarter last year with 2,774 units sold in 2008 to 2,178 units sold in 2009.  Median selling prices were down 18.3 percent from $263,000 in 2008 to $215,000 in 2009.

The multi-family market saw a 52 percent increase in the number of first-quarter sales compared to the same time last year with 1,059 homes sold in 2008 and 1,610 homes sold in 2009.  Median selling prices were down 29.2 percent compared to the first quarter last year from $240,000 in 2008 to $170,000 in 2008.

Quarterly Regional Sales Data:

Regionally, every part of the state saw a decrease in sales of single-family homes compared to the same quarter last year, except the South Shore, which saw an increase of 1.9 percent (993 homes sold in 2008 compared to 1,012 homes sold in 2009).  Of the seven regions, Greater Boston experienced the largest drop in sales at 17.2 percent with 1,350 homes sold in Q1 2008 compared to 1,118 homes sold in Q1 2009.
The Central region experienced the largest drop in median prices in Q1 with a decrease of 21.9 percent over the same time last year from $250,000 in 2009 to $195,300 in 2009.  The Southeast had the smallest decrease in median prices at 10.4 percent from $240,000 in 2008 to $215,000 in 2009.

In the condo market, Cape Cod had the largest drop in sales, with a very significant 49.4 percent decrease compared to the same quarter last year with 154 units sold in 2008 to 78 units sold in 2009.  The Central region had the smallest decrease in condo sales at 8.5 percent, going from 247 units sold in 2008 to 226 units sold in 2009.

The Western region had a 1.2 percent increase in median prices (from $149,750 in 2008 to $151,500 in 2008).  The Southeast region experienced the biggest drop in median prices, with a significant 33 percent drop compared to the same quarter last year (from $149,150 in 2008 to $100,000 in 2009).

In the multi-family market, continues to experience extreme increases in sales activity, with the first quarter being no exception.  No region of the state experienced any decreases, with the Northeast region experiencing a 70.5 percent increase in Q1 compared to the same time last year with 224 homes sold in 2008 to 382 homes sold in 2009.

Price in the multi-family market continues to drive activity as every region of the state had double-digit decreases in median sales price.  Cape Cod had the smallest drop of any region with median prices only going down 12.5 percent ($240,000 in 2008 to $210,000 in 2009).  The West region had the largest drop in median prices at 61.5 percent compared to the same time last year ($165,000 in 2008 to $63,500 in 2009).

“For the fourth quarter in a row, investors see opportunity in the market and they are taking advantage of it.  We continue to need investors who will come in and buy and maintain these multi-family homes.  This will not only help stabilize neighborhoods, but will also contribute to getting the economy moving again,” said Rogers.

About the Massachusetts Association of REALTORS®:
Organized in 1924, the Massachusetts Association of REALTORS® is a professional trade organization with more than 21,000 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.