Last week, MAR reported that single-family home sales were down 21.8 percent in November compared to the same time last year after two straight months of year-over-year increases. Condominium sales were down 27.3 percent in November compared to the same time last year. The median price for a single-family home in November was $283,000 while the median price for a condominium was $250,000.
“While prices still continue to be affordable, the uncertainty created by the September financial crisis on Wall Street caused many would-be-buyers to once again stay out of the housing market,” said MAR President Susan R. Renfrew, broker/co-owner of Renfrew Real Estate in Greenfield. “We need a vibrant housing market to help get the economy moving and the recent steps by the Federal Reserve to reduce interest rates combined
There were 2,339 detached single-family homes sold this November, a 21.8 percent decrease from the 2,991 homes sold the same time last year. On a month-to-month basis, home sales were down 28.1 percent from 3,251 homes sold this past October. Sales traditionally go down from October to November.
The median selling price for single-family homes in October was $283,000, a decrease of 14.2 percent compared to $330,000 in November 2007. Median prices have remained below $300,000 for the third consecutive month. On a month-to-month basis, the November median selling price was down 4.0 percent from $294,900 in October 2008.
The condominium market experienced a 27.3 percent decrease in the number of units sold this November, compared to the same time last year (from 1,246 units sold in 2007 to 906 units sold in 2008). On a month-to-month basis, condominium sales were down 30.1 percent compared to the 1,296 units sold this past October.
Condominium median selling prices in November were down 9.1 percent from $275,000 in 2007 to $250,000 in 2008. Compared to this past October, the median selling price of a condominium has remained the same at $250,000.
Inventory and Days on Market:
The inventory of residential properties on the market as of November 30, 2008 decreased 16 percent compared to the same time last year (from 48,036 listings in 2007 to 40,590 listings in 2008). At the current sales pace, this represents approximately 12.5 months of supply, an increase from 11.3 months of supply in November 2007. On a month-to-month basis, the average months of supply is up from 9.9 months in October 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 13.0 percent from November 2007 (32,786 listings in 2007 to 28,607 listings in 2008) which translates into 12.2 months of supply in November 2008. This is up from 11.0 months of supply last year and up from 9.8 months of supply in October 2008.
The condominium market saw October inventory decrease by 21 percent from last year (15,250 listings in 2007 to 11,983 listings in 2008), which translates into 13.2 months of supply, up from 12.2 months in 2007 and up from 10.2 months this past October.
Detached single-family homes stayed on the market an average of 137 days in November 2008 compared to an average of 133 days in November 2007, while condos stayed on the market an average of 149 days, up from an average of 141 days in November 2007. On a month-to-month basis, days on market for single-family homes were down from 140 days and condos were up from 141 days in October.