Prices continued to fall, with the statewide median home price falling by more than 10 percent during October compared to the previous year.

Single-family home sales rose 13.7 percent to 3,698 from 3,253 in October 2007; however, year-to-date sales declined 12 percent. A total of 34,668 single-family homes sold in the first 10 months of 2008, down from 39,383 during the same period in 2007.

Before prices can level off, inventory will need to be reduced. A few more months of positive sales growth should help reduce inventory.

Plymouth, Berkshire and Suffolk counties experienced the biggest jump in single-family home sales in October. In Suffolk County, home sales surged 71.2 percent to 125 from 73 in October 2007. Berkshire County home sales climbed 35 percent to 139 from 103, and Plymouth County
saw its sales increase 24.7 percent to 379 from 304.

Meanwhile, the median single-family home price in Massachusetts tumbled 13.9 percent to $285,000 in October from $331,000 a year earlier. The year-to-date median home price has fallen to $310,000, 11.2 percent less than last year’s $349,000 median price through the first 10 months of the year.

The steepest declines in median home prices so far this year have occurred in Barnstable, Bristol and Worcester counties, where prices have declined by about 13 percent from 2007.

Condominium sales in October fell, but not as sharply as in previous months earlier this year. Condo sales were down 7.4 percent to 1,660 from 1,792 in October 2007. Year-to-date condo sales have sunk 22.7 percent to 17,665 from 22,854.

The dramatic decline in condo sales is not a big surprise to me, since the median price of a single-family home is at or below where many condos were selling for a few years ago. Given a choice, most home buyers outside of Boston will choose a single-family home.

The median condo price dipped 5.5 percent to $260,000 in October from $275,000 last year. The year-to-date condo price is $278,000, 1.5 percent lower than $282,255 in 2007.

Meanwhile, the Massachusetts Association of REALTORS® (MAR) reported November 24, 2008 that single-family home sales were up 6.6 percent in October compared to the same time last year.

MAR reported that condo sales were only down 1.0 percent in October compared to the same time last year. That's quite a difference from The Warren Group numbers.

MAR also reported that the inventory of residential properties on the market as of October 31, 2008 decreased 13 percent compared to the same time last year (from 51,993 listings in 2007 to 45,118 listings in 2008).  At the current sales pace, the numbers represent approximately 9.9 months of supply, a decrease from 11.9 months of supply in October 2007. 

On a month-to-month basis, the average months of supply is down from 10.2 months in September 2008.  It is considered a balanced market when there are between 7.5 and 8.5 months of supply.

Read The Warren Group Press Release

Read The MAR Press Release

October 2008 Housing Data from the Massachusetts Association of REALTORS®