June Doom: Mass. home sales see dismal year
Home sales in the month of June plummeted once again, marking the worst sales numbers in that month in two decades, according to a recent report.
There was a 23.5 percent decrease in single-family home sales in the Bay State last month compared to June 2010, according to the report released by The Warren Group, publisher of Banker & Tradesman. June was the fifth straight month this year to have double-digit decreases.
“June is typically one of the busiest months of the year for real estate closings. It is disappointing to see such a steep decline,” said Timothy M. Warren Jr., CEO of The Warren Group, in a statement.
According to analysts, spring numbers this year look particularly low because they are being compared to spring 2010, when the federal government was still offering the homebuyer tax credit.
“This year’s sales slump is carrying on as we compare the level of home sales in 2011 to the inflated number of sales driven by last year’s homebuyer tax credits,” said Warren.
One indicator that things may be improving: Quarterly home prices increased slightly from last year from $300,000 to $304,000.
“A second straight month of increasing prices is a promising indicator that buyers are beginning to re-enter the market, and downward pressure on home prices is abating,” Warren said.