Mass. pending home sales were down again
The number of single-family homes put under agreement in Massachusetts last month was down 16 percent when compared with June 2009, and the number of condominiums was down 21 percent, the Massachusetts Association of Realtors said.
It was the second month in a row for such declines. In a press release, the association suggested that drop was the result of the recent expiration of a federal tax credit designed to provide incentives to prospective home buyers to make purchases.
The number of single-family homes put under agreement was 4,354 homes in June, compared with 5,153 homes in June 2009, the association said; on a month-to-month basis, single-family homes put under agreement were down 6.6 percent from 4,663 homes in May.
As for Massachusetts condos, 1,689 units were put under agreement in June, versus 2,127 units in the same month a year ago. On a month-to-month basis, condos put under agreement were down 10.8 percent from 1,894 units in May, the association said.
For many years, the association has put out monthly reports based on home and condo sales that have closed. Recently, the association began issuing separate reports that focused on pending sales - homes under agreement but whose contracts have not yet been finalized.
According to the association, pending sales figures can provide insights on where the local housing market is heading. In this market, 60 days or more can elapse between the time when a consumer puts a home under agreement and when the sale actually closes. As a result, many pending sales from June will likely close in August or September.
Commenting on June's pending sales figures, Massachusetts Association of Realtors president Kevin Sears said in a statement: “June is following the same script as May with pending sales down after the expiration of the tax credit."