Mixed Bag For Home Sales Data
Sales of single-family homes continued their upward climb for the third straight month in September, two leading real estate tracking firms agreed, but both groups warned that the housing market is not showing robust signs of recovery.
Home sales rose 10 percent in September compared to the same month a year ago, with 3,512 sales compared to 3,194 last year, according to the Massachusetts Association of Realtors.
On a month-to-month basis, however, sales dropped nearly 18 percent compared to 4,256 sales in August. MAR reported that it's typical to see a drop-off between August and September sales figures.
Officials at the Boston-based Warren Group tempered expectations somewhat, noting that the 7 percent increase in single-family home sales it recorded will still likely not be enough to finish the year ahead of last year's sales pace.
"It's encouraging to see another month of sales increases. However, sales volume remains low because we are comparing to a period last year when sales dropped off after (federal home-buying) tax credits expired," said Warren Group CEO Timothy Warren Jr. "At this rate, it is almost certain that 2011 sales volume will be one of the slowest years in recent memory."
MAR also reported concern over Congress's failure to extend higher loan limits from the Federal Housing Administration. On Oct. 1, the maximum amount of an FHA loan decreased from 125 to 115 percent of the median area sales price, which MAR expects could lead credit-worthy borrowers to not be able to find money to borrow to purchase a home.
Sales prices for homes dropped below $300,000 in September for the first time in five months, MAR said.
Condominium sales are up on a year-over-year basis about 9 percent, but were down more than 20 percent from August to September, MAR reported.
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