By Ethan Forman
Staff writer
—
Home sales spiked about 25 percent statewide in June while condominium sales also jumped 31 percent compared with the same month a year ago, housing experts said yesterday.
It's the most homes sold in a single month since June 2006, said The Warren Group and the Massachusetts Association of Realtors.
Experts said the expiration of a federal homebuyer tax credit and the typical increase in home sales in the spring made for strong sales in June. Prices statewide were up 7 percent to $325,000, The Warren Group said.
"As we anticipated, there was a big jump in closed sales in June as buyers pushed to close before the June 30 deadline to take advantage of the homebuyer tax credit," said Massachusetts Association of Realtors President Kevin Sears, in a statement.
"The tax credit did its job and got the market moving again," Sears said. "The activity over the next couple of months will answer whether the momentum was sustained."
Salem Realtor Betsy Merry said the figures represent closings that took place in April at the height of activity from first-time homebuyers seeking tax credits before they expired.
"These June 30 closings took place in April," Merry said, "at the height of the tax credit. That was huge."
Realtor Wendy Mack of Danvers said the tax credit stimulus, the decrease in prices, low interest rates, foreclosures and short sales helped spur the market in Beverly and Danvers.
"All those factors are the reason why there is an increase in sales," Mack said. "It will be interesting to see what will happen."
Danvers and Beverly and most North Shore communities followed the statewide trend in improving home and condo sales, according to city and town figures provided by The Warren Group.
Home sales bucked the state trend in Salem and Peabody in that both cities' house sales were weak. However, both saw robust condo sales activity and flat or lower condo prices.
Boxford, Hamilton, Ipswich, Marblehead, Swampscott, Topsfield and Wenham recorded double- and triple-digit single-family home sales. Middleton's single-family home sales were flat.
Mack said Danvers and Beverly may have proven attractive to homebuyers looking for a bargain.
"I think Danvers and Beverly have very medium to upscale homes," Mack said, "and where there was a decline in price there was an opportunity to go into those areas."
Danvers house sales were up nearly 79 percent in June, from 14 in June 2009 to 25 in June 2010, The Warren Group said.
Year-to-date, Danvers home sales doubled to 108, compared with 54 in the first half of 2009. Prices, however, remained flat, with a June median price of $320,000, down $10,000 from June 2009.
The town's condo sales in June rose 62.5 percent from the same month a year ago. Prices were flat at $243,000 in June.
Beverly saw a jump in home sales last month that, at 48 percent, was more in line with the state. The median price stood at $350,000 in June, up nearly 11.5 percent.
Condo sales in Beverly jumped 175 percent in June, The Warren Group said, with four condos sold in June 2009 and 11 sold last month.
In Salem, single-family homes plunged 35 percent in June compared with the same month one year ago. There were 20 homes sold in Salem in June 2009 and 13 sold last month, The Warren Group said.
Year-to-date, there were 75 homes sold in the Witch City in 2009, and 61 sold year-to-date in 2010. That's a nearly 19 percent drop.
Not only were sales off, but so too were Salem's home prices. The median price of $270,000 was off more than 5 percent, while the year-to-date home price was off just under 2 percent.
Salem's median condo price also showed signs of slack last month, down nearly 3.5 percent to $228,250, compared with June 2009. The state, on the other hand, saw a 1.8 percent rise in median condo prices in June to $282,000.
However, Salem's condo sales shot up 33 percent last month compared with June 2009, in line with the statewide trend.
Peabody house sales were also flat compared with the state, with 33 sales in June 2009 and 34 last month, a 3 percent increase. Year-to-date, Peabody saw a 6.6 jump in home sales, with 122 sold in 2009 and 130 sold during the same period this year.
At $297,500, Peabody's median June condo price was up nearly 2.6 percent compared with June 2009.
Condo sales were up 22 percent in June; year-to-date, condo sales shot up nearly 72 percent, from 39 in the first six months of 2009 and 67 in the first half of 2010.
"I think a lot of that is first-time homebuyers and a lot of them are buying condos," Merry said. Condo sales are driving the market in Salem with many professionals 30 and under riding the train to and from Boston.
Not selling are middle-market homes, Merry said. Homes in the $250,000 to $400,000 are tending to stay put.
"The middle market is not making the changes they used to," Merry said.
Staff writer Ethan Forman can be reached at 978-338-2673 or by e-mail at eforman@salemnews.com.
