By Chris Reidy, Globe Staff | November 24, 2004
Offering evidence of a possible shift in the housing market, the Massachusetts Association of Realtors reported yesterday that sales of single-family homes fell for the third straight month in October and that the number of homes and condos on the market is up 7.6 percent from a year ago.
The number of single-family homes sold in October fell 5.3 percent, the biggest year-to-year percentage decline since a drop of 7.6 percent in May 2003, when concern over the launch of US military action in Iraq two months earlier still had consumers skittish about house hunting.
Still, the October median sales price for detached single-family homes jumped 12.4 percent from a year ago to $344,950. The national median price for an existing home was $187,000, up 8.8 percent from October 2003. And there were few signs of a slowdown in the Massachusetts condo market, which enjoyed double-digit gains in both volume and price on a year-to-year basis. Commenting on local sales, president Judy Moore of the Massachusetts Association of Realtors said: ''The market is still strong, but we're seeing a moderation that goes beyond the normal seasonal slowdown" that comes with colder weather.
One sign that a hot market may be cooling, particularly in Boston's suburbs, is a build-up in inventory. According to the realtors' group, the number of homes and condos on the market in October was up 7.6 percent, or 2,838 more units, than October, 2003.
Realtors cautioned against reading too much into one month's numbers, though they noted that if October trends continue, it could be a signal that the local housing market is shifting gears.
''The pendulum is swinging back from a seller's market toward a buyer's market," said Chuck Lemire, executive vice president of Re/Max of New England. A seller's market occurs when demand exceeds supply; a buyer's market occurs when supply exceeds demand. With mortgage rates still near historic lows, demand remains strong for homes in the $250,000 to $650,000 price range, Lemire said. That's perhaps why the condo market, which has much of its inventory in that price range, continues to show strength.
In New England, activity typically slows at this time of year because many consumers avoid moving in winter. And this year, some were distracted by the presidential election and the Red Sox in the World Series, realtors claim.
Meanwhile, the realtors association reported that October 2004 condo sales rose 13.6 percent to 1,553 units. The median sales price was $252,500, up 12.5 percent from October 2003.
