Massachusetts Home Sales Fall Off A Cliff

I am not surprised by the November home sales figures. After the financial crisis hit in September, home buyers disappeared.

The number of single-family home sales recorded in Massachusetts declined 18.4 percent in November, compared to November 2007.

The steep decline came after two consecutive months of home sales increases in Massachusetts.

The data comes from The Warren Group, a publisher of real estate data.

Home prices for the month fell 16.7 percent, to a median price of $275,000, the steepest home-price decline in more than 20 years.

Meanwhile, the condominium market, which experienced more moderate sales declines in September and October, saw double-digit percentage declines in sales and prices in November.

Condo sales sank 27.5 percent to 1,204 from 1,660 in November 2007. Sales through November 2008 decreased 23.1 percent to 18,862 compared to 24,514 during the first 11 months of 2007.

The median condo price plunged 12 percent to $240,000 in November from $272,700 in November 2007. It was the biggest price decline in monthly median condo prices year-over-year since January 1992, according to The Warren Group. But condo prices have held up better so far this year than single-family home prices. Year-to-date, the median condo price slipped 2 percent to $275,000 from $280,525.

A separate report of November home sales data released by the Massachusetts Association of REALTORS® (MAR) showed similar drastic declines. Median sales prices of single-family homes fell nearly 22 percent, to a median price of $283,000, according to the MAR. Condo prices declined 27 percent, to a median of $250,000.

Organized in 1924, the Massachusetts Association of REALTORS® is a professional trade organization with more than 21,000 members.

Nationally, sales of existing homes fell 8.6 percent in November, while median prices plunged a record 13.2 percent, the largest drop since the National Association of REALTORS® (NAR) began its monthly reports.

Read The Boston Globe Article

Read The Warren Group Press Release

Read The MAR Press Release