By Sarah Mupo -- February 23, 2010
The median price of a single-family home sold in Massachusetts rose for the second consecutive month in January by about 10 percent, based on a year-to-year comparison, a local housing market tracking firm said today.
The Warren Group reported the median price climbed from $260,000 to $285,000 last month, a 9.6 percent increase from the same time last year.
"The gains in both sales volume and median prices are a vast improvement to the housing market's slow start last year. The improving economic picture and incentives like the home-buyer tax credit and low mortgage rates have aided the housing market," Timothy M. Warren Jr., the group's chief executive, said in a statement. "Still it's important to keep in mind that last month's median selling price is 12 percent lower than it was in January 2008."
The recent gains in the housing market can be attributed to a temporary tax credit for home buyers and considerably low mortgage rates, but the credit is expected to expire later this year and the rates are likely to increase.
The number and price of condominium sales in Massachusetts also increased in January, the Warren Group said. The median condo price climbed 16.7 percent to $245,000 last month from $209,900 in January 2009. The number of sales raised 25.3 percent to 1,011 in
January from 807 at the same time last year.
The Massachusetts Association of Realtors also released a monthly report on the Bay State's housing market, using different methods to gauge movement than the Warren Group. However, both reports published figures that show sales of single-family homes and condominiums are up in record numbers.
"Another month of positive sales is a nice way to start off the new year as buyers are continuing to take advantage of the favorable market conditions," Massachusetts Association of Realtors president Kevin Sears said in a statement. "However, to get back to a more normal market we still need to see more homes for sale than we currently have. If not, prices will continue to go up to the point where it will impact sales and drive the market back down."
