Mass. home sales dropped 12.9 percent last month

Globe Staff

Sales for single-family homes in Massachusetts fell 12.9 percent in September when compared with the same month a year ago, said the Warren Group, a Boston firm that tracks local real estate activity.

A total of 3,285 single-family homes sold in September, the lowest number of sales recorded in September since 1991, said the firm, adding that September 2010 was the third straight month for year-over-year sales declines. The expiring of a temporary federal tax credits designed to help home buyers is one reason for the drop.

"The continuing decline in sales in September was expected," Timothy M. Warren Jr., chief executive of the Warren Group, said in a statement. "The market has clearly slowed, and comparisons with the sales in the fall of 2009 are unfavorable due to the expiring tax credit."

Meanwhile, the median price of single-family homes rose 0.35 percent on a year-to-year basis to $287,000 in September 2010.

"We've seen 10 straight months of increases in the median price of single-family homes. Prices have remained steady for this entire year, showing increases around 5 percent and as high as 11 percent," Timothy Warren said in his statement. "However, in September, prices crept up by under 1 percent, indicating we could see a reversal of this trend in coming months."

There were 1,326 Massachusetts condominium sold in September, down 21.5 percent from a year ago, the Warren Group said; this was the second-lowest number of condo sales in any month this year, The median selling price for a Bay State condo in September was $262,425, up nearly 1 percent from a year ago.

The Massachusetts Association of Realtors also issued a monthly report on the state's housing market today. Although the association uses a different method to track real estate activity, the results of its report this month were roughly in line with those of the Warren Group's.

“For the market to move in a positive direction, more buyers are needed to fill the void left after the tax credit expired,” association president Kevin Sears said in a statement. “Although the state of the economy remains an issue, prices are stabilizing, inventory is good, interest rates are staying at or near all-time lows, and the Massachusetts unemployment rate is edging down, which is creating an environment that could continue to bring buyers back into the market."

A third report on housing activity is scheduled to be released later today.