Single-family median home prices in Massachusetts fell 18.2 percent during the first quarter compared to the same period in 2008, marking the steepest percentage decline for any quarter since The Warren Group began tracking prices in 1987.

The median price for homes sold during the first three months of 2009 fell to $253,500 from $310,000 in the first quarter of 2008. The March median home price was $255,000, or 16.1 percent lower than the $304,000 median price recorded in March 2008. Monthly median home prices have been falling by double-digit percentages year-over-year since last September.

"The single-family median home price has fallen below $300,000 for seven consecutive months. Reduced prices could help stimulate home sales going forward" said Timothy Warren Jr., CEO of The Warren Group, publisher of Banker & Tradesman. "But I don’t think we’ve hit bottom yet because home sales haven’t picked up consistently. We saw some increases in sales volume toward the end of last year, but there needs to be steady sales gains for three to four quarters before prices begin to level off."

Sales of single-family homes during the first quarter dropped nearly 11 percent to 6,160 from 6,912 a year earlier. That’s the slowest sales pace for a first quarter since 1991. A total of 2,453 homes were sold in March, down 7.4 percent from 2,648 during the same month in 2008.

Median condominium prices in Massachusetts in the first quarter also posted the sharpest decline for any quarter since The Warren Group started recording price changes 22 years ago. The median condo price fell 16.9 percent in the first quarter to $220,100 from $264,900 during the same months in 2008. The March median condo price was down 15.2 percent to $229,000 from $270,000 in March 2008.

A total of 2,802 condos were sold from January through March, nearly 27 percent lower than the 3,832 condo sales transactions recorded during the same months in 2008. Condo sales in March totaled 1,135, a 22.3 percent decrease from 1,460 a year earlier. Condo sales have fallen by 20 percent or more for 12 out of the last 15 months.

"Several incentives have emerged to boost home and condo sales, including a first-time homebuyer tax credit and low interest rates. These could spur sales in the future," said Warren. "However, despite these incentives, unemployment and salary cuts will continue to weigh heavily on consumers who may have at one point considered buying a new home."