Low rates do little to encourage Massachusetts homebuyers

Moving activity in the Bay State plummeted in August amid sliding home sales.

Citing data from the MLS Property Information Network, the Boston Herald reported that Massachusetts home sales dropped 20 percent in August on a year-over-year basis. There were 3,145 single-family homes sold in the state last month, down from 3,947 in August 2009. Additionally, condo sales declined 23 percent, down to 1,345 from 1,749 one year ago.

One would expect that moving activity in Massachusetts would be thriving considering that record-low interest rates are widely available. However, the report also indicated that the median price on a home in Massachusetts rose 4.8 percent from $315,000 in August 2009 to $330,000 last month. The rise in prices for condominiums was even steeper. The median price for a condo increased 9 percent to $306,500, up from $280,000 a year ago.

"Buyers expect Filene's Basement pricing, so they're waiting," local broker Robert Shortsleeve told the paper. "They think that if a home is listed for two weeks, the price will drop by 5 percent and drop another [5 percent] in six weeks."

Still, moving to Massachusetts may still be a popular prospect for families with young children. The state was recently ranked as the state with the country's top education system in the federal government's Race to the Top Competition, which could be a draw for many relocating families.
 

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