Sunday, July 27, 2008

Collapsedachusetts Existing Home Sales Preview: June 2008

Sources inside the Massachusetts Association of Realtors (MAR) report that next week’s monthly existing home sales results will show that June’s single family home sales dropped a whopping 14.9% on a year-over-year basis while condo sales collapsed a spectacular 20.3% over the same period.

Further, the single family median home value declined 8.0% on a year-over-year basis to $334,900 while condo median prices declined 0.3% to $295,000.

It’s also important to note that the June single family home sales count was the lowest June count on record since 1995 and at 4225 units sold was 30.90% below the record June peak set in June 2005.

The following charts (click for larger) show the decline in single family home sales since 2005.

Notice that June 2008 registered a home sales count well below even the 2007 level as well as indicating that the July’s results will likely be well below 4000 units, a significant decline.

After over two years of declining home sales, weakening home prices and now looming recession it appears that Massachusetts has just entered the price “free-fall” phase of the housing decline where home prices continuously drop even through the spring months which are typically strong in the region.

Stay tuned as next week the S&P/Case-Shiller home price index results will be available for Boston likely showing a continued decline even during the typically strong spring selling season.