Massachusetts Sees Flat Sales Volume Continue; ‘Not Yet Out of the Woods’

Sales of single-family homes in Massachusetts declined in February compared to year-before numbers, but healthy sales in January helped year-to-date sales increase compared to 2006, according to a report released today by The Warren Group.

Single-family home sales fell 1.4 percent in February 2007, when 2,983 were sold, compared with 3,024 in February 2006. Year-to-date sales, however, rose 2.24 percent, with 6,306 homes sold during the first two months of this year, compared with 6,168 during the same time period last year.

The median price for single-family homes fell 4.6 percent in February 2007, dropping to $300,000 from $314,500 in February 2006. Year-to-date, the median price fell 3.8 percent, from $320,000 during the first two months of 2006 to $308,000 this year.

Sales of single-family homes in January rose for the first time in two years, increasing by 5.1 percent to 3,304. The median price in January fell 3.4 percent.

“Although the number of sales fell in February, the relatively low decrease shows more of a leveling-out in Massachusetts home market,� said Timothy Warren, Jr., CEO of The Warren Group.

“Sales decreased by double-digit percentages during much of 2006, so a decrease of only 1.4 percent could be an indication of some stabilization in the market. But recent difficulties in the subprime mortgage market could spell trouble down the road. Mortgage lenders may react by tightening qualifications for mortgages, making it more difficult for some to buy homes. That means Massachusetts’ housing market is probably not yet out of the woods.�