Home Sales Down for the Second Straight Month

Buyers Continue to Remain on the Sidelines in October. Median sales prices of single-family homes down slightly while condo prices are up.

WALTHAM, Mass. – November 27, 2007 – The Massachusetts Association of REALTORS® (MAR) reported today that the number of single-family homes sold in October were down 11.4 percent compared to the same time last year. Single-family home median selling prices were also down 3.2 percent. The number of condominiums sold in October was down 13.2 percent, but median sales prices were up significantly at 7.3 percent.

“While sales were down last month, it is important to note that year-to-date residential sales activity is off only 2% from this time last year,” said MAR President Doug Azarian, broker/owner of Century21 Dream Homes in Falmouth. “In addition, residential inventory continues to decline from year-ago levels, and mortgage rates have come down in recent months. For qualified buyers, this remains a good time to buy.”

There were 3,048 detached single-family homes sold this October, an 11.4 percent decrease from the 3,439 homes sold the same time last year. On a month-to-month basis, there was only a 1.9 percent decrease compared to the 3,108 homes sold this past September.

The median selling price for single-family homes in October was $330,000, a decrease of 3.2 percent compared to $341,000 in October 2006. On a month-to-month basis, the October median selling price is down 2.9 percent from $340,000 in September.
The condominium market also experienced a decrease in the number of units sold this October, with a 13.2 percent drop compared to the same time last year (from 1,508 units sold in 2006 to 1,309 units sold in 2007). On a month-to-month basis, condominium sales were down 5.4 percent compared to 1,384 units sold in September. Despite the decrease in sales, this was still the fifth most active October since 1991.
While condominium sales were down in October, median selling prices were up significantly at 7.3 percent from $261,000 in 2006 to $279,950 in 2007. Compared to this past September, the median selling price of a condominium is up 1.8 percent (from $275,000).

“Notwithstanding fluctuations in the market from month to month, real estate continues to be a very good long term investment. For example, if you had purchased a house in 2002 at the median price of $279,000 and sold it last month at the median price of $330,000, your home would have appreciated $51,000.” said Azarian.

Inventory and Days on Market:
The inventory of residential properties (detached single-family homes and condos) on the market as of October 31, 2007 decreased 14 percent compared to the same time last year (from 60,150 listings in 2006 to 51,993 listings in 2007). At the current sales pace, this represents approximately 11.9 months of supply, a decrease from 12.2 months of supply in October 2006. This is the 10th straight month that year-over-year supply levels have gone down. On a month-to-month basis, the average months of supply remained relatively unchanged from 12.0 in September 2007.

The inventory of single-family homes fell 11 percent from October 2006 levels (40,254 listings in 2006 to 35,841 listings in 2007) which translates into 11.8 months of supply in October 2007. This is relatively unchanged from 11.7 months of supply last year and down from 12 months of supply in September 2007.

Inventory continues to drop in the condominium market as well. October inventory went down 19 percent (19,896 listings in 2006 to 16,152 listings in 2007), which translates into 12.3 months of supply, a decrease from 13.2 months in October 2006 and up slightly from 12.1 months this past September.

Detached single-family homes stayed on the market an average of 135 days in October 2007 compared to an average of 126 days in October 2006, while condos stayed on the market an average of 133 days, down from an average of 143 days in October, 2006.

About the Massachusetts Association of REALTORS®:
Organized in 1924, the Massachusetts Association of REALTORS® is a professional trade organization with more than 22,500 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.