Existing-home sales fall in July

Region's prices drop 5 percent, survey shows

In July, existing-home sales in the Northeast dropped about 12 percent when compared with July 2007. (Mary Ann Chastain/Associated Press)

Homes sales tumbled in most big Northeastern cities last month - with only Passaic, N.J., showing a healthy jump in activity - while sales of distressed properties dragged down median prices in the entire region, according to two reports released yesterday.

Sales of existing homes in the Northeast declined nearly 12 percent in July from a year ago, the National Association of Realtors said. The median price in the Northeast was $278,700, down almost 5 percent from July 2007.

That reflected the national trend: Sales dropped more than 13 percent year-over-year, while the median price decreased 7.1 percent, to $212,000.

But the Associated Press-Re/Max Monthly Housing Report, also released yesterday, showed July sales dropped by at least 20 percent in five of the nine Northeast cities tracked. The report analyzed home sales recorded by all real estate agents in those cities, regardless of company affiliation.

In the one bright spot, Passaic, sales jumped 38 percent over July last year. But the rapid sales pace could be stymied by a glut of properties coming on the market. The supply of unsold homes grew 32 percent, to 10.6 months, and the median price slid 6 percent, to $400,000.

In contrast, Pittsburgh posted the worst sales decline, at 31 percent from July 2007. But prices fell less than 1 percent, to $132,000; it was the smallest drop in the region.

In Boston, the supply of homes for sale declined markedly, signaling a possible turnaround in the offing. Judy Moore, an agent with Re/Max Landmark, said the condo market already is showing signs of life.

Overall, Boston home sales fell 12 percent in July and the median price decreased 8 percent, to $355,000, according to the report.

Foreclosures are also leaving their mark in Providence. Nearly one of five sales in the area were distressed sales, said Ron Phipps of Phipps Realty in Warwick, R.I. The discounted properties are weighing down the market, where the median price fell by 13 percent last month, to $234,900, the AP-Re/Max report showed. Sales there also slipped 9 percent in July.

Don Plourde, a real estate agent in Waterville, Maine, doesn't expect sales in the state capital of Augusta to turn around until at least next spring. Home sales fell almost 21 percent in July, while the median home price lost 10 percent to $149,000.

Buyers are worrying about fuel oil, Plourde said, and out-of-state buyers are rare this year, hurting sales of higher-end homes.