Mass. single-family home prices plummet in March

The median price of single-family homes in Massachusetts fell 10.6 percent in March, the biggest decline since December 1990 at the height of the early 1990s housing crisis in the Bay State, according to The Warren Group, a publishing and research firm that tracks the real estate market.

Sales of single-family homes fell below 7,000 during the first quarter this year, the first quarterly drop of that size since 1991.

The median price of single-family homes fell 10.6 percent from $340,000 in March 2007 to $304,000 this past March. During the first quarter, the year-over-year comparison showed a drop of 8 percent, from $337,000 to $310,000.

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Single-family home sales plunged in March by 31.6 percent, from 3,853 last year to 2,637 this year. Year-over-year home sales in the first quarter declined 27 percent, from 9,434 to 6,891.

"The Bay State's housing market is looking a lot like it did at the end of 1990, when December prices fell 11 percent compared to the same month the year before," said Timothy Warren Jr., CEO of The Warren Group, in a statement. "But that downturn was fueled by the banking failures in the 1980s, while this one has more to do with the staggering number of foreclosures facing Massachusetts homeowners. Those foreclosures have not let up; in fact, nearly 9,000 Bay State homeowners were faced with the possibility during the first quarter of this year."

By contrast, condominium prices in Massachusetts are much steadier than single-family home prices. In March, the median price of condos fell 1.8 percent, from $275,000 to $270,000. During the first quarter, the year-over-year price fell 3.8 percent, from $274,950 to $264,500.

But condo sales in March also fell precipitously -- by 35.6 percent, from 2,269 to 1,462. First quarter sales were down 32.6 percent, from 5,692 to 3,835.

Warren said the number of foreclosures, combined with other economic factors, have led to "a glut of homes to hit the market.

"Foreclosures are still running rampant," he said. "and potential homebuyers are gun-shy. For those who are trying to buy, lending standards are stricter than they have been in years, so without a sizeable down payment and excellent credit, many people are finding it difficult to get a mortgage."