Local housing market gains momentum

Globe Staff

The median price for single-family homes sold in Massachusetts rose 8.4 percent in February to $269,950 when compared to the same month a year ago, the Warren Group said; the number of homes sold during February 2010 was up 13.5 percent from a year ago.

February was the third straight month that median home prices have risen in the Bay State, said the Warren Group, a Boston firm that tracks local real estate activity and publishes Banker & Tradesman.

"The local housing market has definitely gained momentum in the last few months as single-family home sales have risen year-over-year for eight months in a row," Warren Group chief executive Timothy M. Warren Jr. said in a statement. "The increase in sales volume has helped fuel pretty significant gains in median prices over the last three months."

On a volume basis, 2,066 single-family home were sold in Massachusetts last month, compared with 1,820 in February 2009.

According to the Warren Group, February condominium sales also increased, posting the sixth consecutive month of year-over-year gains. There were 939 condo sales in February, up 8.9 percent from 862 the prior year.

The median price for condos sold statewide increased 6.8 percent in February to $235,000 from $220,000. February was the fourth straight month that median prices have risen when compared to a year ago, the Warren Group said.

The Massachusetts Association of Realtors also issued a separate report of its own on the Bay State's housing market. The association uses a different method than the Warren Group to track sales. Nevertheless, the Massachusetts Association of Realtors' report for February posted similar results.

According to the association, median prices of single-family homes were up 7.7 percent when compared to February 2009. Home sales have now increased for eight straight months and were up 14.3 percent compared to the same time last year while condominium sales were up 14.8 percent.

"February was another good month for the Massachusetts real estate market as momentum continues to build toward more normal market levels across the state," association president Kevin Sears said in a statement. "While more homes for sale would help ensure prices stabilizing, it was a positive sign that February had the smallest percentage drop since year-over-year inventory declines started 23 months ago."

Another report that included local housing data was issued yesterday.

Boston area housing values increased by 0.3 percent in January, according to seasonally adjusted data from the S&P/Case-Shiller Home Prices Indices. To read a Globe story about that, please click here.