Today, the Massachusetts Association of Realtors (MAR) released their Existing Home Sales Report for September again showing a continued deterioration of the regions residential housing market resulting in a whopping 13.2% annual decline to the median single family selling price.As was noted last month, with September 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.
Additionally, although September showed a much heralded 5.0% year-over-year increase of single family home sales, it’s important to remember that last September was the first month to feel slackening sales as a result of the abrupt collapse of the private Jumbo loan market.
With the report the Massachusetts Realtor leader Susan Renfrew continues her spin even in the face of a truly historic economic collapse.
“Despite all the financial turmoil of the past weeks and months, it continues to be a very good time to buy for qualified first-time homebuyers. In addition to the reduced prices and still-favorable interest rates, programs such as first-time homebuyer tax credit, increased FHA loan limits and affordable loan products from MassHousing are easily accessible,”
This month very clearly exposed an interesting trick that both the Massachusetts Realtors and National Realtors use when reporting the numbers… The month-to-month sales in MA showed a significant 18.8% decline while the year-over-year showed a 5.0% increase…. Which number do you think the Realtors touted to the media?
Of course, when the numbers are reversed (higher monthly change and lower annual) they will use the month-to-month numbers.
MAR reports that in September, single family home sales increased 5.0% as compared to September 2007 with a 12.0% decline in inventory translating to 10.0 months of supply and a median selling price decline of 13.2% while condo sales dropped 6.2% with a 17.2% decline in inventory translating to 10.6 months of supply and a median selling price decrease of 7.3%.
The S&P/Case-Shiller Home Price Index for Boston, which is the most accurate indicator will be released tomorrow so stay tuned as I will create a separate post for Boston that will outline the current price decline.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.
September’s key MAR statistics:
- Single family sales increased 5.0% as compared to September 2007
- Single family median selling price decreased 13.2% as compared to September 2007
- Condo sales declined 6.2% as compared to September 2007
- Condo median price declined 7.3% as compared to September 2007
- The number of months supply of single family homes stands at 10.0 months.
- The number of months supply of condos stands at 10.6 months.
- The average “days on market” for single family homes stands at 134 days.
- The average “days on market” for condos stands at 143 days.
