WALTHAM, Mass. -- The median price of a single-family home in Massachusetts plunged nearly 17 percent last month when compared with November 2007 for the steepest decline in more than two decades, a company that tracks the housing market said Tuesday.
Despite the drop in prices, the nation's economic crisis is discouraging potential home buyers from entering the market, The Warren Group and the Massachusetts Association of Realtors said.
"Fear and panic gripped consumers as the stock market tanked and financial firms and other companies reported heavy losses, which caused many would-be home buyers to pull back," said Timothy Warren, CEO of The Warren Group.
The November median home price slumped to $275,000 from $330,000 during the same month the previous year, according to The Warren Group. The Realtors association said the median price for a single-family home fell to $283,000 in November, from $333,000 last November.
The two organizations use slightly different methods for their calculations.
The Realtors group said sales of single-family homes dropped almost 22 percent last month compared with November 2007, following two consecutive months of increases. The Warren Group put its drop at roughly 18 percent for the slowest pace for the month in the 21 years the group has tracked the market.
"We need a vibrant housing market to help get the economy moving and the recent steps by the Federal Reserve to reduce interest rates combined with affordable home prices are the type of action we need," association President Susan Renfrew said.
(Copyright 2008 by The Associated Press. All Rights Reserved.)
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