The Warren Group Reports Massachusetts Second-Quarter Home Sales Fall to Lowest Level since 1995; Quarterly Numbers Point to Continued Slowdown in State Housing Sector

BOSTON--(BUSINESS WIRE)--Aug. 1, 2006--Sales of Massachusetts single-family homes fell steeply in the second quarter to the lowest figure for the comparable time period since 1995, according to a report issued today by The Warren Group of Boston.

In the second quarter, home sales fell 11.7 percent and median sale prices dropped 2.9 percent. Condo sale prices inched up 0.7 percent, from $282,900 in 2005 to $285,000 in 2006, but the number of condo sales dropped 10.9 percent, according to The Warren Group, the premier provider of real estate and financial data throughout New England and publisher of financial services trade magazines, including Banker & Tradesman.

“That slowdown, though, is a market correction, leading to a soft landing and not a plummet in prices.”

"The Massachusetts housing market continues to slow down. As buyers sit on the sidelines weighing their options, the number of homes sold is lower than at any time in 11 years," said Timothy M. Warren Jr., CEO of The Warren Group. "That slowdown, though, is a market correction, leading to a soft landing and not a plummet in prices."

The second quarter -- the months of April, May and June -- is traditionally the second highest sales period of the year behind the third quarter, which extends from July through September. The first quarter is typically the slowest.

Although the 15,857 single-family homes sold in 2006's second quarter exceeded the numbers sold in the previous two quarters - the periods stretching from October 2005 through March 2006 - the figure was the lowest number posted in an April-through-June period since the 12,978 homes sold in the second quarter of 1995.

The 9,028 condo sales in the second quarter, meanwhile, were the second highest on record for the comparable period, behind the 10,113 sold last year.

For the first half of the year, home sales fell by 10.3 percent and median prices dropped 3 percent to $330,000. Condo sales dropped 6.6 percent, and median prices inched up 1.9 percent to $280,000.

Amid the slowing market, several counties registered strong performances during the first half. Hampshire County, in western Massachusetts, posted the highest single-family unit sales increase (3.9 percent), the second highest median sale price increase (4.4 percent), the second highest condo unit sales increase (21.2 percent), and the third highest condo median sale price hike (13.6 percent). Berkshire County reported the biggest condo price increase - 60.1 percent, from $209,000 to $334,500 - and Worcester County's condo unit sales surged 10.1 percent.

On the down side, home sales in Barnstable (down 18.1 percent) and Essex (down 14.2 percent) were behind the pack, while Middlesex's home sales and condo sales both fell and Worcester's, Essex's and Suffolk's home sales price declines trailed the state average. Worcester and Middlesex counties, the state's two biggest counties in single-family unit sales, suffered the third and fifth steepest declines in year-to-year sales.

In June, Massachusetts home sales fell by 13.9 percent from the year-before period, and condo sales dropped 10.6 percent. Median single-family home sale prices dipped 3.9 percent to $350,000 - the second straight monthly decline and the third in the past four months -- while the median sale price for condos held firm at $292,500.

The data provided by The Warren Group includes all sales logged by registries of deeds in Massachusetts.

For additional statistics, please contact Mike O'Connell at PAN Communications at (978) 474-1900 or at thewarrengroup@pancomm.com.

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.