Mass. Home Sales Down; Median Prices Up

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By Rick Saia

A drop in inventory pushed down sales of single-family homes in Massachusetts last month, halting more than a year of monthly gains, according to two reports released today.

"Demand has outpaced supply with plenty of motivated buyers, but not enough homes for sale to meet the need," said Kimberly Allard-Moccia, president of the Massachusetts Association of Realtors (MAR). "If inventory continues to go down, there is a good chance we will see sales decline as well, which is not what the market needs."

The Warren Group of Boston said 2,246 single-family homes were sold in February, a drop of 5 percent from the 2,366 homes sold in February 2012, and the first monthly drop in sales since December 2011.

However, the market for condominiums was slightly better, with a 1.4-percent jump in sales, from 912 in February 2012 to 925 last month. Year-to-date condo sales are up 5 percent, The Warren Group said.

Despite the drop in sales numbers for single-family homes, the median price rose 12 percent in February to $275,000, according to The Warren Group's data.

The sales figures and the rise in median prices indicate a shift to a seller's market.

"With such low inventory, we're seeing bidding wars - homes selling above the asking price," said Timothy M. Warren Jr., CEO of The Warren Group. "As prices rise, more sellers will begin to list their property which in turn pumps up sales volume."

Homes also appeared to be snapped up quicker in February. The MAR said detached single-family homes stayed on the market an average of 126 days last month, compared with 130 days in February 2012. Meanwhile, condominiums were on the market an average of 109 days, down from 124.

Sales results in Central Massachusetts were mixed, according to data from The Warren Group. In Worcester County, the number of single-family home sales fell 7.7 percent; however, the median price rose nearly 15 percent to $200,000. The condominium market was hotter as sales soared 20.55 percent and the median sale price was up 21.8 percent to $148,500.

Meanwhile, in Middlesex County, sales ticked up 1.25 percent while the median price rose 9.1 percent to $360,000. But the numbers were down in the condo market, with sales falling 2.9 percent and the median price falling 4.7 percent to $252,500.

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