The Number of Single-Family Homes Sold in Massachusetts Up in July

Median sales prices at highest level in over a year

Waltham, Mass. – August 21, 2007 – The Massachusetts Association of REALTORS® (MAR) reported today that the number of single-family homes sold in July is up 6.0 percent compared to the same time last year, with median sales prices also up.  Sales of condominiums remained virtually unchanged, going down 0.1 percent, with median sales prices up 6.3 percent.  Supply and inventory of both single-family homes and condominiums continues to go down year-over-year.

 “It is encouraging to see sales go up in July after four straight months of year-over-year declines,” said MAR President Doug Azarian, broker/owner of Century21 Dream Homes in Falmouth.  “While the tighter lending standards may have taken some buyers out of the market over the past several months, it appears that those who have good credit and some equity, are getting the financing they need and are buying again.”

 There were 4,363 detached single-family homes sold this July, a 6.0 percent increase over the 4,116 homes sold the same time last year.  This is the first year-over-year increase in sales in July since 2004.  On a month-to-month basis, there was a 12.0 percent decrease compared to the 4,959 homes sold this past June.  However, decreases in sales volume (for both single-family homes and condominiums) following the month of June are typical as the spring market winds down.

 The median selling price for single-family homes in July was $365,775, an increase of 1.3% compared to $361,250 in July 2006.  On a month-to-month basis, the July median selling price is up 0.5 % compared to June.  The July 2007 median selling price is the highest it has been since June 2006, and is the fifth highest since 2002.

The condominium market continues to remain steady with 1,933 units sold this July - only two units less than what was sold in July 2006.  On a month-to-month basis, condominium sales are down 17.8 percent with 2,352 units sold this past June.

 The median selling price for condominiums is $293,500 in July, up 6.3 percent over the same time last year ($276,000 in July 2006).  Compared to this past June, the median selling price of a condominium is down 0.8% (from $296,000).  The July median selling price is at the second highest level since MAR began tracking median selling prices in 2002.   

Inventory and Days on Market:
 The inventory of residential properties (detached single-family homes and condos) on the market as of July 31, 2007 decreased 17 percent compared to the same time last year (from 63,114 listings in 2006 to 53,966 listings in 2007).  At the current sales pace, this represents approximately 8.6 months of supply, a decrease from 10.4 months of supply in July 2006.  On a month-to-month basis, the average months of supply went up from 7.5 months of supply in June 2007.

  The inventory of single-family homes fell 12.0 percent from July 2006 levels (42,467 listings in 2006 to 37,314 listings in 2007) which translates into 8.6 months of supply in July 2007.  This is down from 10.3 months of supply the same time last year, but up from 7.6 months of supply in June 2007.

 Inventory continues to drop in the condominium market as well. July inventory went down 19 percent to 8.6 months of supply, a decrease from 10.7 months in June 2006 (20,677 listings in 2006 to 16,652 listings in 2007). It is considered a balanced market when there is between 7.5 and 8.5 months of available housing supply.

 “If inventory and supply continue to keep coming down, we should see prices remaining steady, if not continuing to tick up, through the rest of the summer and the fall,” said Azarian.
 Detached single-family homes stayed on the market an average of 123 days in July 2007 compared to an average of 109 days in July 2006, while condos stayed on the market an average of 116 days compared to 108 days in July 2006.

 Sales and price data from the MAR report reflects transactions occurring through REALTOR®-affiliated multiple listing services in the Commonwealth, and account for approximately 80 percent of all real estate sales in Massachusetts.

About the Massachusetts Association of REALTORS®:
 Organized in 1924, the Massachusetts Association of REALTORS® is a professional trade organization with more than 24,000 members.  The term REALTOR® is registered as the exclusive designation of members of the National Association of REALTOR® who subscribe to a strict code of ethics and enjoy continuing education programs.