Single-family home sales in Massachusetts jumped 6.9 percent in December to 3,581, up from 3,350 in December 2009, according to new data from The Warren Group, publisher of Banker & Tradesman. The increase in home sales is a reversal from the previous five months of year-over-year declines.
Single-family home sales statewide dropped 0.73 percent to 41,279 in 2010, just below the 41,583 sales in 2009. Home sales in the fourth quarter slumped more than 19 percent. A total of 9,448 sales were recorded in the fourth quarter 2010, down from 11,688 during the same period in 2009. Still, the first quarter 2010 was the worst quarter of the year, posting just 7,312 sales.
"December was a remarkable month for home sales in Massachusetts. In addition to sales rising almost 7 percent from the prior December, home sales were up almost 25 percent from November," said Timothy M. Warren Jr., CEO of The Warren Group. "It’s rare to see an increase in sales in December – this is the best December we’ve had since 2006."
For the first month this year, the median sale price of single-family homes decreased. Median sale prices dropped 5.9 percent in December to $277,676, down from $295,000 in December 2009. Median home prices remained below $300,000 in every month in 2010 except June, July and August. Prices in the fourth quarter managed to creep up close to 2 percent, rising to $285,000, compared to $280,000 during the fourth quarter 2009.
"I predicted median sale prices would take a dip due to five consecutive months of sales declines. That finally happened in December, marking the only month this year where median sale prices decreased," Warren said. "A slow market has brought buyers to the table, and deals are being made at lower prices."
The median price for single-family homes increased 3.5 percent to $295,000 in 2010, up from $285,000 in 2009. The year-over-year increase is the first time median prices have come up statewide since 2005.
A total of 2,677 single-family home sales were of bank-owned properties – representing 6.5 percent of all single-family sales in 2010. That’s up from 2009, when bank-owned properties accounted for 4.5 percent of all single-family home sales in Massachusetts.
Condominium sales also decreased in 2010, dropping 3.5 percent to 18,087 from 18,743 in all of 2009. This is the fewest number of condo sales statewide since 1996, when there were 17,453 transactions.
Unlike home sales, condo sales decreased in December, falling 1.2 percent to 1,590 from 1,610 in December 2009. December marks the sixth consecutive month that condo sales decreased in Massachusetts. Fourth quarter condo sales also dropped dramatically, falling almost 26 percent to 3,929 from 5,289 during the same period in 2009.
However, the median condo price in December climbed 3.1 percent to $257,750 from $249,990 in December 2009.
The year-to-date median condo price rose almost 5.2 percent to $265,000 from $252,000 in 2009. Median prices also rose in the fourth quarter, increasing to $265,000 from $245,000 a year earlier. Median prices on condos rose every month in 2010.
A total of 1,021 condominium sales were of bank-owned properties – representing 5.6 percent of all condominium sales in 2010. That’s up slightly from 2009, when bank-owned condo sales represented 5.5 percent of all condo sales.
