Local Home Sales Up, Prices Down From Last Year

In what may be a sign of improvement for the local real estate market, North Andover home sales in July were higher than they were that same month last year.

The Warren Group, Boston-based publisher of Banker & Tradesman, has released a report showing home sales in Massachusetts and in individual cities and towns in the Commonwealth.

"While it's encouraging to see sales rise in July, we're comparing statistics to a very rough month of July last year," Banker & Tradesman Managing Editor Cory S. Hopkins said in the report. "The expiration of the homebuyer tax credits hurt sales volume a year ago, which is skewing the actual picture of the market now."

According to the report, 23 homes were sold in North Andover last month, up more than 35 percent from July 2010 when 17 homes were sold.

Neighboring Andover fared similarly -- up about 28 percent from 36 homes sold in July 2010 to 46 homes sold in July 2011. Even Lawrence saw an increase, from 12 homes to 16.

In contrast, home sales in neighboring Haverhill were down from last year -- from 37 in July 2010 to 28 in July 2011. And in Boxford the decrease was from 10 in July 2010 to 7 in July 2011.

Statewide, sales of single-family homes reached 3,847 in July, a 7 percent from July 2010, bucking a dismal trend of five months of year-over-year decreases. Just how dismal has it been? So far in 2011, just 20,893 homes have sold in the Commonwealth, a 16 percent decrease from sales during the first half of 2010.

More for Less

But looking at other numbers, the increase in sales in North Andover may be related to the decrease in prices. The median home price locally in July 2010 was $500,000. In July 2011, the average median price was $433,350 -- down almost 14 percent.

"There was in fact more sales in July in town, however the prices are down following the trend lines we expected to see," Lisa Johnson Sevajian of Coldwell Banker Residential Brokerage said. "The important thing to note is that the quality of home and the amenities it offers is increasing meaning you can  now buy more home for your money essentially."

She added that her lowest sale price in town in July 2010 was $289,500 and her highest was $899,000. In dramatic contrast, in July 2011 her lowest sales price was $160,000 and her highest was $700,000.

"We are seeing many multiple offer situations here in town within just a few days however many sellers are up against a wall because of the amount owed to their mortgage companies," Johnson Sevajian said. "Often sellers are listing at literally the amount owed plus closing costs with very little room to move on price. Buyers are showing they are not willing to spend more than market value. An average house in average condition at a price even slightly higher than market value will not sell."