Median home prices drop again in Bay State

More entry-level buyers in the Massachusetts housing market is one reason the commonwealth's median sale price declined again last month.

The median sale price dropped to $340,000, a 1.7 percent decline from the January price of $346,000.

"It's the third consecutive month and the fifth time in the last six (months) the median price is down month-to-month," said John Dulczewski, spokesman for the Massachusetts Association of Realtors.

"More entry-level stuff has been selling in the more recent period versus what we're comparing to," Dulczewski said of recent month-to-month trends. "As (mortgage rates) came down, entry-level buyers were able to get back into the market after they were priced out last spring and summer."

The median price of a single-family house was up 11.8 percent last month compared with February 2004. "We went back from single-digit to double-digit appreciation in single families for year to year," Dulczewski said.

In January, single-family median price appreciation was 7.4 percent, compared with January 2004.

The number of single-family sales was nearly flat year over year, climbing 0.7 percent to 2,292.

Condominium sales continued to be hot, breaking another record for the month of February with the number of sales jumping 38.8 percent compared to February 2004. The median selling price of condominiums was also up 18 percent, hitting $269,000 in February, compared to $228,000 in February 2004.

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