Massachusetts Single-Family Home Sales Fall Nearly 20 Percent in August, The Warren Group Reports

Statewide Market Slowdown Continues as Year-to-Year Median Home Sale Price Drops 8 Percent

5 Percent Drop in Median Condo Sale Price is Biggest since 1995

BOSTON--(BUSINESS WIRE)--The Massachusetts housing market slumped again in August as the number of single-family home sales fell by 19.8 percent and the median home sale price dropped by 8 percent, according to a report released today by The Warren Group. The market for condominiums was weak also, as the median sale price suffered its biggest year-to-year decline since 1995.

“The August numbers show that the market slowdown is taking hold and shows no sign that it is going to turn around anytime soon”

The near 20 percent drop in single-family home sales marks the seventh month in the last 11 where home sales have fallen by double-digit figures in Massachusetts. July's 26.9 percent year-to-year sales drop was the biggest since 1995. The August figure is the second biggest year-to-year decline since 2000.

Overall, the number of single-family home sales fell to 5,506 from 6,867 the year before. The median sale price fell 8.0 percent to $331,000 from $360,000 in August 2005.

Condo sales dropped 19.3 percent in August, down to 3,113 units sold from 3,859 during the previous year. The median sale price dropped 5 percent to $276,000 from $290,500 the year before.

The August condo sales percentage drop is the second biggest year-to-year decline since March 2003 (23.8 percent). The biggest percentage drop since then took place in July 2006 - 23.5 percent.

Single-family home sales have now fallen lower than the comparable periods a year ago in eight straight months, dating back to January, and 18 of the last 19 months, dating back to February of 2005. Condo unit sales have fallen from year-before periods since April.

The data was compiled by The Warren Group, the publisher of Banker & Tradesman and the premier provider of real estate and financial data throughout New England. The Warren Group's data includes all sales recorded at registries of deeds throughout Massachusetts.

For the first eight months of the year, Massachusetts single-family home sales were down 14.3 percent, and median prices were down 4.2 percent, to $332,500. Condo sales have fallen by 11.1 percent from the prior year while the median sale price was flat with the first eight months of 2005 at $279,900.

For the year-to-date period, Hampshire was the only Massachusetts county not to see single-family home sales decline. Hampshire sales stayed steady at 1,013. Nantucket's fell the hardest, by 22.1 percent. Meanwhile, Nantucket's median single-family sale price rose by the state's biggest figure - 8.5 percent - and Worcester's 5.6 percent median sale price decline was the state's steepest.

In condominiums, Nantucket led the pack with a 77.4 percent sales gain, with Hampshire's 20.1 percent gain placing second. Dukes County trailed the rest of the state with a 53 percent decline. Berkshire County reported the biggest condo median sale price increase - 52.2 percent. Franklin County's median condo sale price dropped by the biggest margin - 10.9 percent.

"The August numbers show that the market slowdown is taking hold and shows no sign that it is going to turn around anytime soon," said Timothy Warren Jr., CEO of The Warren Group. "We are clearly going through a market correction that is long overdue, considering the 10 years of unbridled sales and price increases Massachusetts has experienced. In the long run this may be healthy for the Massachusetts economy, making its housing more affordable and the pricing more competitive with other areas of the country. This could help the Commonwealth attract new jobs and retain its existing employment base."

About The Warren Group

The Warren Group, based in Boston, is the publisher of Banker & Tradesman, The Commercial Record and a series of association publications. As the premier provider of real estate data in New England, The Warren Group offers a range of real estate products and services for professionals and consumers searching for real estate and financial information. For more information about The Warren Group, please visit www.thewarrengroup.com or call 617-428-5100.