Sales of homes, condos encouraging, industry analysts say
BY RICK FOSTER SUN CHRONICLE STAFF
Wednesday, May 23, 2007 8:13 AM EDT
The Massachusetts real estate market continued to show signs of increased stability in April, although sales fell slightly from a year ago and properties remained on the market longer, according to a report Tuesday by the Massachusetts Association of Realtors.
A total of 3,328 detached, single family homes were sold during the month, down 1.7 percent from the same period at this time last year.
Realtors said that was still heartening news, though, because a year ago sales had slumped 7 percent between April 2005 and April 2006.
This year, the median sales price of a Bay State Home declined about 2 percent from a year earlier.
But while the figures showed a slowing of erosion in the Massachusetts real estate market, local brokers were hard pressed to find silver linings in the flat performance.
David Joyce of Tri-Town Real Estate in Norton, said that despite a flurry of activity recently, he has yet to see a solid turnaround in home sales.
"Right now, the homes that are selling are the most aggressively priced," he said.
Many potential buyers appear to be hanging back and keeping their options open.
Ed Pariseau Jr. of Pariseau Real Estate in North Attleboro was more optimistic.
"It's definitely better than it was last summer and fall," said Pariseau, who added there are more serious buyers taking advantage of attractive pricing and historically low interest rates.
Statewide, industry officials said they saw reason for hope.
"The housing market continued to trend in a positive direction for the month of April," said Realtors association President Doug Azarian, owner of Century21 Dream Homes in Falmouth. "While the number of detached single-family homes sold was down, the 1.7 percent decrease year-to-year was the lowest we've seen in the month of April for the past three years."
The median selling price of a single-family home last April was $345,000, down 2.3 percent from April 2006. Compared with last March, the median selling price edged up 0.3 percent.
While single-family homes sales were down, condominiums saw a slight uptick in sales in April - 1,753 units, a 0.7 percent increase, compared with the same month last year.
The median selling prices of condos, $274,650, climbed 2.6 percent in April, compared with the same month last year. Compared with March 2007, the median selling price fell 1.6 percent from $279,000.
A bright spot was the shrinking inventory of single family homes and condos currently on the market - down 22 percent from a year ago - 50,777 listings this year, compared with 65,232 a year ago.
"With inventory levels decreasing and interest rates still low, demand should continue to keep prices stable through the end of the spring home buying season," Azarian said.
Detached single-family homes stayed on the market an average of 150 days in April, compared with an average of 127 days a year earlier. Condos stayed on the market an average of 143 days, compared with 117 days in April 2006.
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