On Monday, MAR reported that single-family home sales were up five percent in September compared to the same time last year.  This is the first year-over-year increase in monthly home sales in 2008.   Condominium sales were down 6.2 percent in October compared to the same time last year.  The median price for a single-family home in September was $295,000, the first time median prices have dipped below $300,000 since April 2003.  
  
“With median prices down below $300,000 for the first time since 2003, buyers are taking advantage of the affordable prices and starting to get back into the market,” said MAR President, Susan M. Renfrew, broker/co-owner of Renfrew Real Estate in Greenfield.  “While transactions are up, we will still need to see how the changes in the financial markets and the upcoming election will impact sales going forward.”

 

There were 3,272 detached single-family homes sold this September, a five percent increase from the 3,116 homes sold the same time last year.  On a month-to-month basis, home sales were down 18.8 percent from 4,032 homes sold this past August.  A double digit percent decrease from August to September is typical. 

 

The median selling price for single-family homes in September was $295,000, a decrease of 13.2 percent compared to $340,000 in September 2007.  This is the first time the median price has dropped below $300,000 since April 2003, when the median price was $291,750.  On a month-to-month basis, the September median selling price was down 9.2 percent from the August 2008 median of $325,000. 

 

The condominium market experienced a 6.2 percent decrease in the number of units sold this September, compared to the same time last year (from 1,386 units sold in 2007 to 1,300 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 28.2 percent compared to 1,811 units sold this past August.  Similar to single-family home sales, a double digit percent decrease from August to September is typical.  

 

Condominium median selling prices in September were down 7.3 percent from $275,000 in 2007 to $255,000 in 2008.  Compared to this past August, the median selling price of a condominium is down 12.8 percent (from $292,450).

 

“Despite all the financial turmoil of the past weeks and months, it continues to be a very good time to buy for qualified first-time homebuyers.  In addition to the reduced prices and still-favorable interest rates, programs such as first-time homebuyer tax credit, increased FHA loan limits and affordable loan products from MassHousing are easily accessible,” said Renfrew.

 

Inventory and Days on Market:
The inventory of residential properties on the market as of September 30, 2008 decreased 13.6 percent compared to the same time last year (from 53,957 listings in 2007 to 46,598 listings in 2008).  At the current sales pace, this represents approximately 10.2 months of supply, a decrease from 12.0 months of supply in September 2007.  On a month-to-month basis, the average months of supply is up from 8.1 months in August 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 12.0 percent from September 2007 (37,232 listings in 2007 to 32,757 listings in 2008) which translates into 10.0 months of supply in September 2008.  This is down from 11.9 months of supply last year and up from 10.3 months of supply in August 2008.

 

The condominium market saw September inventory decrease by 17.2 percent from last year (16,725 listings in 2007 to 13,841 listings in 2008), which translates into 10.6 months of supply, down from 12.1 months in September 2007 and down from 7.6 months this past August. 

 

Detached single-family homes stayed on the market an average of 134 days in September 2008 compared to an average of 129 days in September 2007, while condos stayed on the market an average of 143 days, up from an average of 134 days in September 2007.  On a month-to-month basis, days on market for single-family homes were up from 138 days and condos were up from 136 days in August.