Community Corner

Melrose Sees Small Uptick in Home Sales in May

The numbers bucked the statewide trend of falling home sales compared to 2010, largely due to the homebuyer tax credit available last year, according to The Warren Group.

Melrose home sales saw a slight uptick in May compared to the prior year, in comparison to dropping home sales statewide, according to the latest figures from The Warren Group.

In May, 22 single-family homes were sold, an increase of almost 16 percent over May 2010, when 19 homes were sold. In contrast, statewide home sales dropped more than 25 percent, with a total of 3,263 single-family homes sold, down from 4,375 sales in May 2010.

Year-to-date Melrose single-family home sales are still down compared to last year—77 have sold so far in 2011, compared to 83 in 2010, a drop of more than 7 percent. Statewide, year-to-date home sales are down nearly 19 percent. There were 12,731 sales through May, down from 15,683 sales during the same period last year.

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However, Timothy M. Warren Jr., The Warren Group CEO, pointed out in a press release that this time last year was the height of the homebuyer tax credit included in the federal stimulus bill. That credit required home buyers to sign a purchase contract on or before April 30, 2010—and close by Sept. 30, 2010—to qualify for the credit. First-time home buyers received an $8,000 tax credit and repeat home buyers received an $6,500 tax credit.

“It’s been a tough start to the year as we’ve been comparing sales volume against the height of the homebuyer tax credit. However, lending standards have also become more stringent which is slowing the recovery in the real estate market,” Warren said in the press release. “I expect that in the second half of the year comparisons with 2010 will turn positive.”

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Melrose median sales price increases, state reverses trend

Melrose saw a very small uptick in the median sale price of single-family homes—less than a percentage point—with a median sales price in May of $393,750, compared to $390,000 in May 2010.

However, the city's year-to-date median single-family home sale price is up almost 3 percent compared to last year—$402,500 so far in 2011, compared to $391,000 in 2010—which is in contrast to statewide prices, which have been in a five-month-long downward trend. That trend reversed in May, according to The Warren Group.

The median price for a single-family home in Massachusetts rose to $304,000, up from $294,000 a year earlier. Prices have not been this high since August 2010, when the median sale price was $316,500.

The year-to-date median price for Bay State sold homes was $279,300, down 2 percent from $285,000 in the prior year.

“The increase in prices is surprising to me and a hopeful sign,” Warren said in the press release. “Perhaps buyers are back in the game and competing for deals.”

Melrose condo sales go up, state's condo sales go down

Melrose bucked the statewide trend by doubling its condo sales in May compared to last year—six condo sales compared to three in May 2010.

Statewide condo sales fell almost 38 percent from a year earlier, with 1,206 sold this past May compared to 1,944 in May 2010.

Year-to-date Melrose condo sales are down more than 8 percent—22 have sold so far this year compared to 24 last year—and statewide sales are down almost 30 percent, dropping to 5,072 from 7,223 during the same period last year.

As with its single-family homes, Melrose saw a very slight uptick in condo median sale prices in May, rising almost 2 percent to $264,950, compared to $260,000 in May of last year. Statewide median sale prices rose more than 13 percent to $290,964.

Melrose's year-to-date median condo sale price is down more than 8 percent, to $239,950 this year compared to $262,500 last year, while the state median condo sale price rose to $260,000, compared to $250,000 during the same period in 2010.


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