Yesterday, the Massachusetts Association of Realtors (MAR) released their Existing Home Sales Report for August again showing a continued deterioration of the regions residential housing market resulting in a whopping 9.0% annual decline to the median single family selling price.As was noted last month, with August comes continued seasonal deceleration in single family home sales that will generally continue slumping through the Fall before reaching a low in seasonal sales next February.
With this drop-off will come additional pricing pressure as sellers compete for the scanty remains of the 2008 selling season.
With the report the Massachusetts Realtor leader Susan Renfrew turns to a new, possibly classic, analogy of the market acting like a ping-pong ball.
“Until we have some certainty with the economy and the election, we will most likely see the housing market ping-ponging along as buyers continue hopping off – and then back on - the fence,”
I would alter the analogy just slightly to add that the pin-pong ball is bouncing down a steep stairway.
MAR reports that in August, single family home sales slumped 14.3% as compared to August 2007 with a 9.0% decline in inventory translating to 8.3 months of supply and a median selling price decline of 9.0% while condo sales dropped 19.2% with a 15.0% decline in inventory translating to 7.6 months of supply and a median selling price increase of 0.4%.
The S&P/Case-Shiller Home Price Index for Boston, which is the most accurate indicator will not be released until next Tuesday so stay tuned as I will create a separate post for Boston that will outline the current price slide as seen through the CSI.As in months past, be on the lookout for the inflation adjusted charts produced by BostonBubble.com for an even more accurate "real" view of the current home price movement.
Augusts’ key MAR statistics:
- Single family sales declined 14.3% as compared to August 2007
- Single family median selling price decreased 9.0% as compared to August 2007
- Condo sales declined 19.2% as compared to August 2007
- Condo median price increase of 0.4% as compared to August 2007
- The number of months supply of single family homes stands at 8.3 months.
- The number of months supply of condos stands at 7.6 months.
- The average “days on market” for single family homes stands at 130 days.
- The average “days on market” for condos stands at 136 days.
