Home / News / Market Studies / Bay State Home Sales Fall To 18-Year Low
Print This Post Print This Post

Bay State Home Sales Fall To 18-Year Low

Sales of single-family homes in Massachusetts during the first quarter dropped nearly 11 percent, according to a market report released Wednesday by the Boston-based research firm ""The Warren Group"":http://www.thewarrengroup.com. During the first three months of the year, the company said 6,160 homes were sold in the Bay State, down from 6,912 for the same period last year.
According to The Warren Group's market data for the sate, the Q1 2009 numbers mark the slowest sales pace for a first quarter since 1991. During the month of March alone, the company said, only 2,453 Massachusetts homes were sold, down 7.4 percent from 2,648 during the same month in 2008.
Single-family median home prices in Massachusetts plummeted 18.2 percent during the first quarter compared to the same period in 2008, marking the steepest percentage decline for any quarter since The Warren Group began tracking the state's home prices in 1987.
The company reported that the median price for homes sold in Massachusetts during the first three months of 2009 fell to $253,500, down from $310,000 in the first quarter of 2008. The March median home price was $255,000, or 16.1 percent lower than the $304,000 median price recorded in March of last year. According to The Warren Group, monthly median home prices in the Bay State have been falling by double-digit percentages year-over-year since last September.
Timothy Warren Jr., CEO of The Warren Group, explained that the single-family median home price in Massachusetts has remained below $300,000 for seven consecutive months now. But, Warren said, the reduced prices could help stimulate home sales in the state going forward.
Warren added, though, ""I don’t think we’ve hit bottom yet because home sales haven’t picked up consistently. We saw some increases in sales volume toward the end of last year, but there needs to be steady sales gains for three to four quarters before prices begin to level off.""
Median condominium prices in Massachusetts in the first quarter also posted the sharpest decline for any quarter since The Warren Group started recording price changes 22 years ago. The real estate research firm said the median condo price fell 16.9 percent in the first quarter to $220,100, down from $264,900 during the same months in 2008. The March median condo price dropped 15.2 percent to $229,000, down from $270,000 in March 2008.
A total of 2,802 condos were sold in Massachusetts from January through March, nearly 27 percent lower than the 3,832 condo sales transactions recorded during the same period last year. Massachusetts condo sales in March totaled 1,135, a 22.3 percent decrease from 1,460 a year earlier. The Warren Group said condo sales in the state have fallen by 20 percent or more for 12 out of the last 15 months.
Warren added, ""Several incentives have emerged to boost home and condo sales, including a first-time homebuyer tax credit and low interest rates. These could spur sales in the future. However, despite these incentives, unemployment and salary cuts will continue to weigh heavily on consumers who may have at one point considered buying a new home.""

About Author: Carrie Bay

Carrie Bay is a freelance writer for DS News and its sister publication MReport. She served as online editor for DSNews.com from 2008 through 2011. Prior to joining DS News and the Five Star organization, she managed public relations, marketing, and media relations initiatives for several B2B companies in the financial services, technology, and telecommunications industries. She also wrote for retail and nonprofit organizations upon graduating from Texas A&M University with degrees in journalism and English.

Check Also

Dip in Rates Brings Resurgence in Bidding Wars

Redfin’s latest analysis of homebuyer trends has found that bidding wars are heating up as mortgage rates have dipped and the nation’s housing supply remains strained.