May home sales still down compared to the same time last year, but experience smallest drop since September 2007
Today, MAR reported that both single-family home sales and condominium sales experienced their biggest April-to-May percentage increase in the past 10 years. While year-over-year single-family home sales were down 10.1 percent in May, this is the smallest decrease since September 2007. May median single-family home prices were also down 9.2 percent compared to last year. The number of condominiums sold in May was down 24.5 percent, with median sales prices down 2.6 percent. On a month-to-month basis, median prices for both single-family homes and condominiums increased by 2.4 percent and 2.7 percent respectively from last month.
“While the number of sales for both single-family homes and condos were down in May, these decreases continue to narrow since the start of the year, which is definitely a move in the right direction,” said MAR President, Susan M. Renfrew, broker/co-owner of Renfrew Real Estate in Greenfield. “It is also a positive sign that median prices on a month-to-month basis continue to move up. However, the 9.2 percent year-to-year median price drop indicates that the growing number of distressed sales continues to have an impact.”
There were 3,491 detached single-family homes sold this May, a 10.1 percent decrease from the 3,884 homes sold the same time last year. On a month-to-month basis, there was a 24.5 percent increase compared to the 2,803 homes sold this past April. This was the largest April-to-May increase in the past 10 years.
The median selling price for single-family homes in May was $322,500, a decrease of 9.2 percent compared to $355,000 in May 2007. On a month-to-month basis, the May median selling price was up 2.4 percent from April. This is the highest median selling price in 2008.
The condominium market continued to experience a significant decrease in the number of units sold this May, with a 24.5 percent drop compared to the same time last year (from 2,173 units sold in 2007 to 1,640 units sold in 2008). Yet this is the smallest annual decrease in 2008. On a month-to-month basis, condominium sales were up a significant 27.5 percent compared to 1,286 units sold this past April. As was the case with single-family home sales, this was the biggest April-to-May increase in the past 10 years.
Condominium median selling prices in May were $282,500 down 2.6 percent compared to the year before at $290,000. Despite the decrease, the May median price was the highest since August 2007. Compared to this past April, the median selling price of a condominium is up 2.7 percent (from $275,000).
Inventory and Days on Market:
The inventory of residential properties (detached single-family homes and condos) on the market as of May 31, 2008 decreased 6.2 percent compared to the same time last year (from 53,913 listings in 2007 to 50,537 listings in 2008). At the current sales pace, this represents approximately 9.8 months of supply, an increase from 8.9 months of supply in May 2007, and a decrease from 12.1 months of supply in April 2008. This is the first time in the past eight months that months of supply were down from the double-digit figures.
The inventory of single-family homes was down 5.0 percent from May 2007 (36,857 listings in 2007 to 35,012 listings in 2008) which translates into 10 months of supply in May 2008. This is up from 9.5 months of supply last year and down from 12.2 months of supply in April 2008.
The condominium market saw April inventory go down 9.0 percent (17,056 listings in 2007 to 15,525 listings in 2008), which translates into 9.5 months of supply, up from 7.8 months in May 2007 and down from 12.1 months this past April.
Detached single-family homes stayed on the market an average of 143 days in May 2008 compared to an average of 139 days in May 2007 and down from 166 days this past April. Condos stayed on the market an average of 135 days, up from an average of 134 days in May 2007 and down from 162 days this past April.