The median price of a single-family home in Massachusetts declined 11.8 percent in May 2009 compared to the same period last year, and single-family sales dropped 15.3 percent, The Massachusetts Association of REALTORS reported June 23, 2009.
I must admit, I expected the sales numbers to be much better, either flat or slightly higher on a year-over-year basis. The decline in median price does not surprise me.
Why? Everyone I speak with is busy, including other agents, home inspectors and mortgage professionals. Sure, the mortgage people were busy with refinances, but many told that home purchases were picking up quite a bit. The median home price decline is not surprising considering that so many of the bank-owned properties are in such horrible shape. Those properties are playing a major role in dragging prices down in some communities. Most of my first-time home buyers are simply not interested in bank-owned homes
The median condo price declined 6.2 percent in May compared to May 2009. Median home prices for single-family homes and condominiums have experienced month-to-month gains for the last three and four months respectively.
There were 2,972 detached single-family homes sold this May, a 15.3 percent decrease from the 3,510 homes sold the same time last year. On a month-to-month basis, home sales were up 21.4 percent from 2,448 homes sold in April 2009.
The median selling price for single-family homes in May was $284,000, a decrease of 11.8 percent compared to $322,000 in May 2008. Despite the decrease, this is the highest median price since October 2008. In addition, the May median price is up 12 percent from the 2009 low of $252,500 in February. On a month-to-month basis, the May median selling price was up 3.3 percent from $275,000 in April 2009. This is the third straight month of month-to-month increases. The May median selling price is now back to more affordable 2003 levels.
The condominium market experienced a significant decrease of 24.6 percent in the number of units sold this May compared to the same time last year (1,640 units sold in 2008 compared to 1,236 units sold in 2009); however, on a month-to-month basis, condominium sales were up 34.9 percent compared to the 916 units sold in April 2009. May was the fourth straight month of month-to-month increases.
Condominium median selling prices in May were down 6.2 percent from $282,500 in 2008 to $265,000 in 2009; however, May's median condo price is the highest median price since August 2008. The May median price is up 30 percent from the 2009 low of $204,000 January. On a month-to-month basis, the median selling price of a condominium was up 12.3 percent from an April 2009 median price of $236,000. The May median selling price for a condominium is now back to 2005 levels.
The number of single-family homes put under agreement in May was down 5 percent compared to the same time last year (5,059 homes in 2008 to 4,802 homes in 2009). On a month-to-month basis, single-family homes put under agreement were up 7.2 percent from 4,480 homes in April. The number of condos put under agreement in May was down 6 percent compared to May 2008 (2,147 units in 2008 to 2,025 units in 2009). On a month-to-month basis, condos put under agreement were up 7.2 percent from 1,878 units in April. Pending sales or “under agreements” are homes that have a signed purchase and sale agreement, but have yet to close and be recorded.
The inventory of residential properties on the market in Massachusetts as of May 31, 2009 decreased 17 percent compared to the same time last year (from 50,537 listings in 2008 to 41,770 listings in 2009). At the current sales pace, this represents approximately 12.4 months of supply, up from 9.8 months of supply in May 2008. On a month-to-month basis, the average months of supply is up slightly from 12.1 months in April. 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 17 percent from May 2008 (35,012 listings in 2008 to 29,210 listings in 2009). to 11.9 months of supply in May 2009.
The condominium market saw May inventory decrease by 19 percent from last year (15,525 listings in 2008 to 12,560 listings in 2009), to 13.7 months of supply in May 2009.
Detached single-family homes stayed on the market an average of 148 days in May 2009 compared to an average of 143 days in May 2008, while condos stayed on the market an average of 149 days, up from an average of 135 days in May 2008.
I question the usefulness of the data for days on the market due to the length of time it takes to close short sales. Some listing agents place the short sales "under agreement" on the MLS when an offer is accepted. Some listing agents just flag the property as having an accepted offer, thus continuing to accumulate days on the market. Other agents just keep the property "active" on the MLS until the lender approves the short sale. That can take many months.
I wonder how other agents feel about the data for average days on the market.
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