Mass. home sales rise, but prices still down

Globe Staff

October sales of single-family homes in Massachusetts jumped 17.2 percent to 4,295 from 3,664 in October 2008 - the highest number of sales for the month of October since 2005 and the biggest increase in year-over-year sales so far in 2009, said the Warren Group, which added that a federal tax credit for first-time home buyers helped stimulate sales.

October was the fourth consecutive month that single-family home sales climbed, and condo sales also increased, said the Warren Group, a Boston firm that tracks local real estate activity and publishes Banker & Tradesman.

But median prices for both single-family homes and condominiums slipped from year-ago levels.

The median price for single-family homes sold in October fell 2.8 percent to $277,000 from $285,000; that 2.8 percent drop compares with a 1 percent drop in September, the Warren Group said.

On a volume basis, Massachusetts condo sales rose 12 percent to 1,854 from 1,655 in October 2008, the firm said. That's a "significant reversal" for the local condo market, which in the first six months of 2009 saw double-digit percentage declines in sales, the firm added.

The median selling price for Massachusetts condos dropped 8.1 percent to $240,000 in October from $261,000 during the same month in 2008, the Warren Group said.

Referencing sales activity for single-family homes, Timothy M. Warren Jr., chief executive of the Warren Group, said in a statement."Sales volume has increased for four consecutive months so I think that there’s some evidence here that a housing recovery is on its way. But we can’t say that the housing market has completely turned the corner yet because median home prices are still declining year-over-year."

Timothy Warren added: "The tax credit that’s being offered to home buyers has certainly stimulated home sales. And while unemployment is still a concern, I think that people who have jobs are probably feeling a little bit more optimistic about the financial markets and the overall economy and they’re more willing to go out and make big purchases like buying a home."

(Today's Globe features an AP story that noted that there has been a recent surge in regional home as many first-time home buyers rushed to qualify for an $8,000 federal tax credit that was scheduled to expire at the end of this month before Congress extended it through April.)

Separately, the Massachusetts Association of Realtors issued its own monthly report on the state's housing market. While the association uses a different method to track real estate activity, its October results were roughly in line with those of the Warren Group's.

On a volume basis, 3,828 Massachusetts single-family homes were sold in October, up 17.7 percent from October 2008 and up 11.7 percent from September 2009, the association said.

The median price for a single-family home last month was $287,000, down 2.6 from a year ago and down 1 percent from September 2009, the association said.

In October, 1,519 condos were sold in Massachusetts, up 17.2 percent from October 2008 and up 4 percent from September 2009, the association said.

The median condo selling price in October was $240,000, down 4 percent from a year ago and down 7.7 percent from the previous month, the association said.

The number of single-family homes put under agreement in October was up 27 percent compared with the same time last year (3,662 homes in 2008 to 4,652 homes in 2009), the association added, and the number of condos put under agreement in October was up 33 percent compared with October 2008 (1,319 units in 2008 to 1,983 units in 2009).

"It is apparent from this significant jump in home sales in October, which is the biggest year-over-year gain we’ve seen since November 2004, that buyers were making sure to take advantage of the tax credit prior to its deadline,” association president Gary Rogers said in a statement. "Now that the President has extended and expanded the credit, we should see continued improvement in the market through the winter and into the spring."

A third report on housing was also issued today - the S&P/Case-Shiller Home Price Indices. Some economists deem Case-Shiller the best measure of housing prices because Case-Shiller focuses on repeat sales.

According to seasonally adjusted figures, Boston-area home prices fell 0.2 percent in September when measured against August.

That halted a positive trend. Through August, the S&P/Case-Shiller Indices noted that Boston-area prices had risen for several consecutive months.

Looking at 20 markets across the country, the indices released today noted that on a composite basis, home prices were up 0.3 percent in September from August.

Boston-area home prices in September were down 3.3 percent from September 2008, less than the 9.4 percent decline for the top 20 markets across the country, according to the S&P/Case-Shiller Indices.