Single-family home sales in Massachusetts dropped 10.3 percent in January while median prices plummeted by 20.2 percent compared to January 2008, The Warren Group, publisher of Banker & Tradesman, reported February 24, 2009.
The Massachusetts median home price dramatically dropped to $259,250 from $325,000 in January 2008. January marked the fifth consecutive month that single-family median home prices have been off by double-digit percentages. The $259,250 median price is the lowest it’s been since March 2002.
There were 1,908 single-family home sales in January, down from 2,126 in January 2008. It was the lowest sales volume for the month of January in the 22 years that The Warren Group has been tracking the Massachusetts residential real estate market.
Condominium sales hit a 17-year low for the month of January. There were 806 condo sales statewide in January, a 29 percent decrease from 1,136 during the same month in 2008. The median condo price fell 22.2 percent to $209,900 in January from $269,950 a year earlier.
Condo prices are finally starting to weaken after holding up much better and longer than single-family home prices.
The Massachusetts Association of REALTORS® (MAR) reported similar numbers. The MAR said that single-family home sales were down 12.5 percent in January, and the median selling price for single-family homes declined 17.9 percent compared to January 2008.
The median selling price for single-family homes in January was $263,500 compared to $321,000 in January 2008.
The MAR and The Warren Group uses slightly different methods to calculate median price and report sales.
Condominium sales were down 26 percent in January compared to the same time last year, MAR reported. The median price for a condominium was $204,000.
The MAR reported that inventory of residential properties on the market as of January 31, 2009 decreased 20 percent compared to January 2008 (from 44,540 listings in 2008 to 35,459 listings in 2009). At the current sales pace, the number of properties on the market represents approximately 15 months of supply, a decrease from 15.7 months of supply in January 2008. On a month-to-month basis, the average months of supply is up from 10.0 months in December 2008. It is considered a balanced market when there are between 7.5 and 8.5 months of supply.
The inventory of single-family homes decreased 19 percent from January 2008 (30,559 listings in 2008 to 24,822 listings in 2009). That translates into 14.3 months of supply in January 2009. Supply is down from 15.4 months last year and up from 9.6 months of supply in December 2008. January was the 10th straight month that inventory has gone down compared to the year before, and single-family home supply is at its lowest level since February 2005.
The condominium market saw January decrease by 24 percent decrease in inventory, (13,981 listings in 2008 to 10,637 listings in 2009), which translates into 16.9 months of supply, up from 16.4 months in 2008 and up from 11.3 months this past December. Condo inventory is at its second lowest level since December 2004.
Detached single-family homes stayed on the market an average of 146 days in January 2009 compared to an average of 143 days in January 2008, while condos stayed on the market an average of 179 days, up from an average of 165 days in January 2008.
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