Massachusetts Home Sales Down for Third Straight Month in November

WALTHAM, Mass. - December 27, 2007 - "If your New Year's resolution is to buy a home, you have the market to do it in," said Massachusetts Association of REALTORS® President Doug Azarian, broker/owner of Century21 Dream Homes in Falmouth, in response to the latest housing numbers released today by MAR. "We are in a 'buyer's market' that really favors first-time homebuyers who don't have a home to sell. In fact, first-time homebuyers could be one of the keys to reversing the downward sales trend of the last several months."

The Massachusetts Association of REALTORS® (MAR) reported that the number of single-family homes sold in November was down 12.6 percent compared to the same time last year. Single-family home median selling prices were also down 2.9 percent.  The number of condominiums sold in November was down 14.2 percent from last year, while median sales prices were up 1.9 percent.

There were 2,986 detached single-family homes sold this November, a 12.6 percent decrease from the 3,416 homes sold the same time last year.  On a month-to-month basis, there was only a 2.0 percent decrease compared to the 3,047 homes sold this past October.    
 
The median selling price for single-family homes in November was $330,000, a decrease of 2.9 percent compared to $340,000 in November 2006.  On a month-to-month basis, the November median selling price remained unchanged from October at $330,000.

The condominium market also experienced a decrease in the number of units sold this November, with a 14.2 percent drop compared to November last year (from 1,451 units sold in 2006 to 1,245 units sold in 2007). On a month-to-month basis, condominium sales were down
4.9 percent compared to 1,309 units sold in October.  While condo sales were down, it was still the fourth most active November since 1991. 

Condominium median selling prices have continued to go up year-over-year for nine straight months.  Prices were up 1.9 percent from $270,000 in 2006 to $275,000 in 2007.  Compared to this past October, the median selling price of a condominium is down 1.8 percent (from $279,950). 

Year-to-date residential sales (detached single-family homes and condos) through November are down 3.0 percent compared to the same time period last year (59,413 through November 2006 to 57,662 through November 2007).

Real estate continues to be a very good long term investment (notwithstanding fluctuations in the market from month to month).  For example, a house purchased in 2002 at the median price of $280,000 and sold last month at the median price of $330,000, would have appreciated $50,000.

“For people to take advantage of the long-term investment benefit real estate provides, they need to get into the market.  It’s a ‘buyer’s market’ now, but the buyers are sitting on the sideline. If you are ready to buy – and only you know if that is the case –this is a good time to do it,” said Azarian.

Inventory and Days on Market:

The inventory of residential properties (detached single-family homes and condos) on the market as of November 30, 2007 decreased 9.5 percent compared to the same time last year (from 53,105 listings in 2006 to 48,036 listings in 2007).  At the current sales pace, this represents approximately 11.4 months of supply, an increase from 10.9 months of supply in November 2006.  On a month-to-month basis, the average months of supply is down slightly from 11.9 in October 2007. 

The inventory of single-family homes fell 7 percent from November 2006 levels (35,254 listings in 2006 to 32,786 listings in 2007) which translates into 11.0 months of supply in November 2007.  This is up from 10.3 months of supply last year and down from 11.8 months of supply in October 2007.

Inventory continues to drop in the condominium market as well. November inventory went down 15 percent (17,851 listings in 2006 to 15,250 listings in 2007), which translates into 12.2 months of supply, virtually the same from November 2006 at 12.3 months and down slightly from 12.3 months this past October. 

Detached single-family homes stayed on the market an average of 133 days in November 2007 compared to an average of 130 days in November 2006, while condos stayed on the market an average of 141 days, up from an average of 121 days in November, 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 REALTORS® who subscribe to a strict code of ethics and enjoy continuing education programs.