July single-family home sales drop at sharpest rate in 11 years

August 22, 2006

BOSTON --Sales of single-family homes in Massachusetts declined in July at the sharpest rate for a single month since 1995, and condominium sales dropped off at the fastest pace since 2003, according to a report released Tuesday by a firm that tracks real estate transactions.

Single-family home sales dropped nearly 27 percent and condo sales fell 23.5 percent, offering fresh evidence that the state's housing slump isn't about to end soon. But The Warren Group urged not to read too much into numbers from a single month.

"Monthly fluctuations can happen," said Timothy Warren Jr., CEO of the Boston-based publisher of regional real estate and financial data. "We're not pressing the panic button yet, but we are watching the trend lines very closely."

A total 5,070 sales of single-family homes were recorded statewide in registries of deeds in July, compared with 6,934 in the same month a year ago. The decline was the state's biggest in percentage terms since a 29.6 percent drop in April 1995, according to the group, which began tracking sales data in the 1980s.

The median sales price -- the point where half of homes sell for more and half sell for less -- fell 6.1 percent to $339,000.

Condominium sales fell to 2,692 last month from 3,518 in July 2005, the sharpest decline since a 23.8 percent drop-off in March 2003. The median price fell 4.2 percent to $277,000.

Single-family home sales have now declined for seven straight months measured against comparable months a year earlier, and for 17 of the last 18 months dating to February 2005. Condo unit sales have fallen each month since April.