Massachusetts home sales rose for the second consecutive month, climbing 2 percent in August year-over-year, but condominium sales continued to slump, according to a new report from The Warren Group.
"This is a modest increase in single-family home sales but the fact that sales have improved for two months straight after declining steadily for the first half of the year, is a hopeful sign," said Timothy M. Warren Jr., CEO of The Warren Group, publisher of Banker & Tradesman. "However, unemployment, mortgage delinquencies and foreclosures remain a challenge to a quick housing recovery."
Single-family home sales totaled 4,480 in August, up from 4,390 in August 2008. Year-to-date home sales fell 5 percent to 25,984 from 27,364 last year. The 2 percent gain in August sales follows an 11 percent increase in July home sales.
Meanwhile, home prices slid. The median selling price for a single-family home dropped 6.2 percent to $302,625 in August from $322,500 during the same month last year. This is the third straight month that median home prices have exceeded $300,000. Berkshire, Dukes and Suffolk counties were the only regions in the state where median home prices jumped in August compared to a year earlier.
Monthly median home prices statewide have tumbled compared to year-ago levels since October 2007 or for 23 consecutive months. So far this year, the median home price is off 10.4 percent from a year ago, falling to $285,000 from $318,000.
"Median home prices are about 21 percent lower than they were four years ago when prices in Massachusetts peaked. The market has a way to go before prices begin to stabilize," Warren added.
Sales of Bay State condominiums slipped 8.3 percent to 2,114 from 2,306 last August. A total of 11,762 condo sales were recorded from January through August, an 18.2 percent decline from 14,371 a year earlier.
The median condo price dipped 6.8 percent to $275,000 from $295,000. The year-to-date median condo price is off 8.2 percent to $257,000 from $280,000.
"The condominium market hasn’t experienced any gains in monthly sales for over two years, and condo prices have fallen sharply. But in the last two months, declines in both sales and prices eased a bit," said Warren.
