Buyers are taking advantage of more affordable prices
WALTHAM, Mass. – November 25, 2008 - The Massachusetts Association of REALTORS® (MAR) reported today that single-family home sales were up 6.6 percent in October compared to the same time last year. This is the second straight month of year-over-year increases in monthly home sales in 2008. Condominium sales were only down 1.0 percent in October compared to the same time last year. The median price for a single-family home in October was $294,950, while the median price for a condominium was $250,000.
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Listen to our November 2008 Housing Market Podcast as MAR President Susan Renfrew discusses the October Data
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“As was the case in September, buyers took advantage of more affordable prices in October, which continued to drive activity,” said MAR President, Susan M. Renfrew, broker/co-owner of Renfrew Real Estate in Greenfield. “An increase in sales in each of the past two months is definitely something to feel good about, but we still need to see how sales are in November to determine if this is a trend.”
There were 3,250 detached single-family homes sold this October, a 6.6 percent increase from the 3,049 homes sold the same time last year. This is only the third October since 1996 that has seen a year-over-year increase. On a month-to-month basis, home sales were down only 1.0 percent from 3,283 homes sold this past September.
The median selling price for single-family homes in October was $294,950, a decrease of 10.6 percent compared to $330,000 in October 2007. This is the second consecutive month that median price has been below $300,000 since April 2003, when the median price was $291,750. On a month-to-month basis, the October median selling price was unchanged from September 2008.
The condominium market experienced only a 1.0 percent decrease in the number of units sold this October, compared to the same time last year (from 1,309 units sold in 2007 to 1,296 units sold in 2008). This is the smallest decrease since August 2007 when there was 3.0 percent gain. On a month-to-month basis, condominium sales were down less than 1.0 percent compared to the 1,300 units sold this past September. This is only the second October since 1997 that hasn’t experienced at least a 3.0 percent decline in condo sales from the previous month.
Condominium median selling prices in October were down 10.7 percent from $279,950 in 2007 to $250,000 in 2008. Compared to this past September, the median selling price of a condominium is down 2.0 percent (from $255,000).
Inventory and Days on Market:
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, this represents 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.
The inventory of single-family homes decreased 11.0 percent from October 2007 (35,841 listings in 2007 to 31,912 listings in 2008) which translates into 9.8 months of supply in October 2008. This is down from 11.8 months of supply last year and down from 10 months of supply in September 2008.
The condominium market saw October inventory decrease by 18 percent from last year (16,152 listings in 2007 to 13,206 listings in 2008), which translates into 10.2 months of supply, down from 12.3 months in September 2007 and down from 10.6 months this past September.
Detached single-family homes stayed on the market an average of 140 days in October 2008 compared to an average of 135 days in October 2007, while condos stayed on the market an average of 141 days, up from an average of 133 days in October 2007. On a month-to-month basis, days on market for single-family homes were up from 134 days and condos were down from 143 days in August.
About the Massachusetts Association of REALTORS®:
Organized in 1924, the Massachusetts Association of REALTORS® is a professional trade organization with more than 21,000 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.
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Editors and reporters: Please note that the term Realtor is properly spelled with an initial capital “R”, per the Associated Press Stylebook.
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