Keeping consistent with the current nationwide trend, Massachusetts home sales have declined since last year, recent reports suggest. The Warren Group is a Boston firm that tracks local real estate activity and has been consistent in reporting on Massachusetts home sales throughout the real estate crisis of the last few years. Earlier this year, the Warren Group reported that single-family home sales in Massachusetts fell 14.4% from March 2010 to March 2011. The median price had slipped as well, though not as dramatically, with an average 2.8% drop in home price to $267,250.
Condominium sales in the Commonwealth dropped even more significantly; with the Warren Group reporting a 31.6% drop in home sales during the same twelve-month period. The median price had also dropped almost 5% for condos, with a median price of $237,000.
The firm explained that this drop in home sales is another sign of the real estate market's continued weakness. At the time of the report, sales volume had declined in seven of the previous nine months, although the month of March itself showed the highest number in sales volume for the year so far, with 2,865 homes sold during the month.
The Warren Group's report was consistent with national studies on home sales and values that examined Massachusetts real estate activity. The S&P/Case-Shiller Home Price Indices, which monitors major American cities' activity and not state-by-state figures, indicated that Boston-area home sales had declined in February 2011 for the seventh straight month.
Warren Group CEO Timothy M. Warren, Jr. was quick to point out a factor that might make this comparison unfair, however. He underlined that the boost in sales that occurred in April of last year was largely due to the rush for the federal homebuyer tax credit, which required a purchase and sales agreement to be in place before April 30, 2010. Without such an incentive - the tax break gave up to $8,000 back to first time homebuyers - the market in the Commonwealth appears stagnant or even seriously declining.
More recently, the Massachusetts Association of Realtors reported similar findings, with a 20% drop in home sales between April 2010 and April of this year. The median price of single-family homes, according to the association, dropped from $279,000 to $274,000, a 3.9% overall decrease.
The Realtors Association President Laurie Cadigan argues that the sagging economy has kept home sales and prices low. "We're hopeful that as the economy and job market continues to improve, especially in Massachusetts, so will buyer confidence," she explained when the report was released earlier this spring.
Home prices dropping is not a negative factor for everyone. With the decline of home sales and subsequent drop in home prices across the state, the current real estate market is undoubtedly a buyer's market. The Warren Group pointed out that dropping prices can lure buyers into the market, and realtors across Massachusetts hope that this, along with the spring buying season currently underway, the market boosts a little.
With low home prices and the current economy, it is a great time to invest in a home. If you are a first time homebuyer or simply looking to take advantage of the current market, contact us today to schedule a free consultation. At P&P, we leverage more than 25 years of real estate law experience to help guide your transaction to a swift closing.
