Sales of homes may be nearing the bottom
Figures down from '07 but no lower than previous month
Sales of single-family homes in Massachusetts remained in a deep rut in February, 19 percent below sales in the same month last year, but in a sign that the worst may be upon us, the depth of the rut did not increase.
The 2,123 sales in February were basically the same as the 2,110 sales in January, according to Warren Group, a real estate data publisher.
The median price of a single-family home fell nearly 9 percent, to $301,000. But that cloud also may have a silver lining, as housing analysts believe that many buyers will not return to the market until sellers cut prices.
The Massachusetts Association of Realtors is expected to report today that sales involving a real estate agent - a subset of the Warren Group data - declined by 23 percent in February, while median prices dropped 4.6 percent to $310,000.
The numbers for Massachusetts were broadly similar to national numbers released yesterday by the National Association of Realtors, which said sales of existing US homes fell 24 percent from last February. Median prices dropped 8 percent.
As in Massachusetts, the national numbers reflect a slight improvement over January, which Wall Street took as a ray of hope in bidding up stocks yesterday.
"My thinking at this point is that we're probably getting close to the bottom. Not that there's going to be a sudden rebound," said Brian Bethune, an economist at Global Insight, a forecasting firm based in Waltham. Bethune said efforts by the federal government to lower mortgage rates and increase the availability of loans appeared to be increasing demand for housing.
Neither Warren Group nor the real estate agents group released complete data yesterday, making it difficult to draw conclusions about the market in February. For example, it is not clear whether some areas of Massachusetts - such as the western suburbs - continue to outperform others where foreclosures have taken more of a toll, such as Dorchester, New Bedford, and Lowell.
Gary Rogers, a real estate agent with RE/MAX First Realty in Waltham, said he had seen increased interest from shoppers in recent weeks. Open houses that attracted a handful of lookers in the winter now draw a few dozen, he said. The market remains difficult, he said, but a combination of nicer weather and sellers cutting prices appeared to be making a difference.
"We expect it to continue down a little more, but maybe we're getting down toward the bottom," said Rogers, who is president-elect of the Massachusetts Association of Realtors.
The condo market remains a relatively more troubled area. Warren Group said sales fell 25 percent, and prices fell 7 percent to a median of $256,500. The state realtors group said sales volume dropped 35 percent and prices fell 7 percent.
Binyamin Appelbaum can be reached at bappelbaum@globe.com.
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