Existing-home sales rose from the first quarter in 13 states, largely from buyers responding to discounted home prices, according to the latest quarterly survey by the National Association of Realtors®. Nearly one-quarter of metropolitan areas showed rising home prices in the second quarter from a year ago, with greatly mixed conditions continuing around the country.

NAR President Richard Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said foreclosures are distorting the price data. “In many areas with large concentrations of foreclosure sales, homes are being purchased below replacement cost values,” Gaylord said. “Many buyers with long-term expectations are getting exceptional value in the current market. Once the inventory is drawn down, price pressure will return because the costs of construction are rising – today’s buyers are very well positioned to build wealth over time.” National Association of Realtors®.
Let’s take a look at the sales statistics for July 2008 to see how the Western MA real estate market looks: 
  
This July, Worcester County saw a 15% decrease in sales, when compared against July 2007.  The average sales price declined 15% to $285,378, and homes were on the market an average of 2 days longer than the same time last year.

Worcester County
Active Listings
Pending Sales
Sold Listings
Average DOM
Average Sale Price
July 2008
896
293
496
149
$285,378
July 2007
n/a
n/a
583
144
$335,710


In Hampden County, sales were down 14% in July 2008, while homes were on the market an average of 33 days longer than in July 2007.  The average sales price dropped 3% to $215,459.

Hampden 
County
Active Listings
Pending Sales
Sold Listings
Average DOM
Average Sale Price
July 2008
416
151
284
129
$215,459
July 2007
n/a
n/a
332
96
$222,732


Hampshire County experienced a more dramatic 23% decrease in sales this July.  Market times were, on average, one week shorter than in July 2007.  The average sales price dropped only 1% to $301,041.

Hampshire County
Active Listings
Pending Sales
Sold Listings
Average DOM
Average Sale Price
July 2008
134
50
98
110
$301,041
July 2007
n/a
n/a
127
118
$304,273


Again, as Gaylord said and as these statistics show, real estate prices are declining in some areas, even within the same city. 

For the latest Western MA real estate market conditions in your area, please call me at 413-283-1223 or visit ShannonDonohueHomes.com.