Home Sales Drop, Home Prices Rise in the Bay State

In the Bay State, single-family home sales dropped 2 percent in November--the first time year-over-year sales dropped since April, according to the latest report by """"The Warren Group"""":http://www.thewarrengroup.com.

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For the first time since April, homes sales posted a decrease and the fewest number of sales recorded for a month. A total of 3,902 single-family homes sold in November, down from 3,983 in November 2012. Even so, year-to-date sales are up more than 6 percent. A total of 45,979 sales have been recorded, up from 43,222 during the same period last year.

""""This has been a banner year in local real estate, but one with a focus on rising prices. The sales volume growth has been more restrained and now we see a modest decline,"""" said Timothy M. Warren Jr., CEO of The Warren Group.

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""""We're seeing the same thing in Massachusetts that the rest of the country is experiencing: a slight slowdown in home sales, driven by increasing interest rates and tight supply.""""

Home prices rose 4 percent in November making it the 14th consecutive month of year-over-year increases in the median price of a single-family home. The median price of single-family homes rose to $307,000 in November, up from $295,000 a year earlier. The median price for homes sold January through November was $322,000, up 11 percent from $290,000 in the prior year.

""""I've been concerned about how the rapid increase of prices would affect the market, and that could be one factor in the dip in sales volume in November,"""" Warren added. """"With the supply of homes for sale low and prices escalating we may have reached a turning point where the recovery continues but with less frenzy.""""

Condominium sales in Massachusetts increased in November, rising 7 percent from a year earlier. A total of 1,609 condos sold last month, up from 1,503 in November 2012. Year-to-date condo sales are up almost 6 percent, increasing to 18,683 from 17,655 a year earlier.

The median condo price in November jumped more than 6 percent. The median selling price was $299,900, up from $282,000 a year earlier. The year-to-date median price of condos in the Bay State is $295,900, up almost 7 percent from $277,025 a year ago.