Mass. home sales rise for 3rd straight month

Single-family home sales in Massachusetts increased for the third consecutive month in September, and the median price for homes sold dropped 1.4 percent to $285,000 from $289,000 from September 2008, the smallest drop in year-over-year monthly median home prices in about two years, the Warren Group said in a report on local residential real estate activity.

The rise in sales was partly attributed to a temporary $8,000 tax credit for first time home buyers that the federal government implemented earlier this year, the Warren Group and the Massachusetts Association of Realtors said. The tax credit, part of a plan to revive the sluggish housing market, is limited to sales finalized by Nov. 30, a recent Globe story noted.

There is talk in Washington of extending the tax credit, and the Massachusetts Association of Realtors expressed concern that it will be "more difficult for the market to stabilize" without an extension of that tax credit.

In any case, the tax credit was in effect for September, and on a volume basis, the Warren Group reported that the number of single-family homes sold in Massachusetts rose 4.5 percent in September to 3,785 from 3,623 in September 2008. The Warren Group is a Boston firm that tracks and publishes real estate data.

Massachusetts condominium sales increased 3.7 percent in September to 1,693 from 1,633 in September 2008, the first year-over-year increase in condo sales in more than two years, the Warren Group said; September’s median selling price for Bay State condos dropped 2.3 percent to $259,000 from $265,000.

"The increase in home sales for three months straight is giving us some hope that the housing market is truly on the mend," Timothy M. Warren Jr., chief executive of the Warren Group, said in a statement. "We believe that some of these gains were the result of first-time home buyer tax credit, which is due to expire in several weeks. If this trend of increased sales volume continues through October, we may end the year with about the same number of home sales as 2008."

Gary Rogers, president of the Massachusetts Association of Realtors, also issued a statement commenting on the local house market.

"We really feel that the past three months of positive home sales are a result of the $8,000 tax credit and its impending expiration date," Rogers said. "Despite this bump, we are concerned that it will take longer and be more difficult for the market to stabilize without extending the Federal tax credit for home buyers past the Dec. 1 deadline.

The Massachusetts Association of Realtors also issued a monthly report this morning on the Bay State housing market. While the group uses a different method than the Warren Group to track sales, the findings of both reports on single-family homes were roughly similar.

On a year-to-year basis, the association reported that September condo sales were up 12.2 percent, versus the 3.7 percent increase reported by the Warren Group.

To read a recent Globe story on the condo market in downtown Boston, please click here.

A third report that includes data on the local housing market - the S&P/Case-Shiller Home Price Indices - is scheduled to be issued later this morning. (Globe Staff)