Home sales drop could mean fewer moving to Mass.

Home sales in the Bay State had enjoyed positive growth for several months, although a new report may indicate that fewer people are moving to Massachusetts.

The MLS Property Information Network reported that the expiration of the federal homebuying tax credit had a "stunning" effect on Massachusetts' real estate market, according to the Boston Herald. The paper reported that 3,014 Bay State homes were sold in July, a 30 percent decrease compared to July 2009, when 4,320 homes changed hands. Prior to last month, year-over-year home sales in the state had increased for 12 straight months, said the report.

Buyers are hesitant to purchase a home now that there is no tax incentive, and they're looking to save money by moving in with family and friends, economist Karl Case told the Herald. "Adult chidlren are staying with mom and dad longer, and fewer immigrants are buying homes."

Even condominium sales - which had enjoyed a recent surge - appear to be faltering. Year-over-year condo sales were down 35 percent in July, said the report.

Declining moving activity is particularly surprising given that June home sales were near their highest levels in four years, reported the Warren Group.


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