Thu, August 05, 2010
Decline in Massachusetts Home-Buying Continues
The Massachusetts Association of Realtors (MAR) reports that the number of single-family homes and condominiums placed under agreement in July 2010 was well below last year's level.
As the homebuyer’s tax credit came to an end, there was considerable speculation that it had been fueling an uptick in home-buying that would quickly subside. So far the available data confirm that expectation.
The MAR’s numbers indicate the number of single-family homes under agreement declined 18% in July 2010 versus July 2009, and this is 7% lower than June 2010. Condo agreements dropped 28.0 percent vs. last year, and the number of condominium purchase-and-sale agreements declined 13% from the previous month. For both single-family homes and condominiums, May-July 2010 agreements in Massachusetts have been below last year’s level. The National Association of Realtors reports a 19% decline versus last year in sales agreements, indicating a similar national trend.
Although record-low interest rates ought to make home purchases more affordable, it’s likely that many who were waiting to buy a home accelerated their purchases in light of the tax credit. Until there are clearer signs of a sustained economic upturn, many potential homebuyers will probably wait on the sidelines.