The condominium market also experienced a significant decrease in the number of units sold this January, with a 34 percent drop compared to January of last year (from 1,271 units sold in 2007 to 843 units sold in 2008).  On a month-to-month basis, condominium sales were down 24 percent compared to 1,107 units sold in December. Condominium median selling prices have continued to go up or stay the same (as happened in Dec. 07) year-over-year for the past 11 straight months. Prices were up 3.5 percent from $268,000 in 2007 to $277,500 in 2008. Compared to this past December, the median selling price of a condominium is up 2.8 percent (from $270,000). 

Real estate continues to be a very good long term investment (notwithstanding fluctuations in the market from month to month). For example, had you bought a single-family home in January of 2003 (with 5% down) at the median price of $295,000 and sold it this January at the median price of $321,000, you would have realized a gain of $26,000. Or a 76% return on your initial 5% downpayment of $14,750. In addition to the five years of tax benefits.

Inventory and Days on Market:
            The inventory of residential properties (detached single-family homes and condos) on the market as of January 31, 2008 increased 4.1 percent compared to the same time last year (from 42,794 listings in 2007 to 44,540 listings in 2008).  At the current sales pace, this represents approximately 15.8 months of supply, an increase from 10.7 months of supply in January 2007.  On a month-to-month basis, the average months of supply is up from 12.1 in December 2007.

            The inventory of single-family homes went up 8 percent from January 2007 levels (28,420 listings in 2007 to 30,559 listings in 2008) which translates into 15.4 months of supply in January 2008.  This is up from 10.4 months of supply last year and up from 11.9 months of supply in December 2007.

            The condominium market saw January inventory go up 1.0 percent (14,374 listings in 2007 to 13,981 listings in 2008), which translates into 16.6 months of supply, up significantly from 11.3 months in January 2007 and up from 12.6 months this past December.

Detached single-family homes stayed on the market an average of 143 days in January 2008 compared to an average of 145 days in January 2007, while condos stayed on the market an average of 165 days, up from an average of 140 days in January, 2007.

About the Massachusetts Association of REALTORS®: Organized in 1924, the Massachusetts Association of REALTORS® is a professional trade organization with more than 23,000 members. The term REALTOR® is registered as the exclusive designation of members of the National Association of REALTORS® who subscribe to a strict code of ethics and enjoy continuing education programs.