Massachusetts Real Estate – Sales Dwindle, Prices Plunge

By Jerry Kronenberg

RISMEDIA, July 30, 2008-(MCT)-Massachusetts housing suffered its worst first half in nearly two decades this year, with sales down 19.1% and median prices off 9.2%, new figures show.

“What’s clear from these numbers is we haven’t reached the bottom of the market yet,” said Tim Warren of market tracker the Warren Group, which released yesterday’s data. “The rash of bad news about bank failures and Fannie Mae’s and Freddie Mac’s capital needs convinces us that a turnaround isn’t going to happen this year.”

Warren said just 18,487 Massachusetts houses changed hands between Jan. 1 and June 30 — the worst six-month showing since January-June 1991.

Median sale prices also fell to $315,000, down 9.2% from January-June 2007.

Among condos, a mere 9,844 units changed hands between Jan. 1 and June 30. That’s off 28.3% from 2007′s first half, as well as the weakest six-month sales level seen in 11 years.

At the same time, median condo prices fell to $277,000 in the latest period, off 1.1% from 2007′s first six months.

“The slump in condo sales is even worse than in the single-family sector,” Warren said. “Condo prices haven’t retreated as much as single-family home prices, so condo units aren’t moving.”

The expert expects weak conditions to continue into at least early 2009.

Meanwhile, the Massachusetts Association of Realtors reported that houses sold in June needed 129 days on average to attract buyers, up from 126 days a year earlier.

Similarly, condos that changed hands had been on the market 140 days on average, up from 124 days in June 2007.

“We hoped that June (market conditions) would be better, but that just didn’t materialize,” MAR President Susan Renfrew said.

Still, the group did report that the number of Massachusetts houses and condos listed for sale fell to 50,705 last month from 54,497 a year earlier. Lower numbers of unsold properties potentially point to a stronger housing market down the road.