Home prices continue to drop

The Globe reported yesterday that the median sales price for single family homes in Massachusetts dropped 3.2% in FY11 (July 1, 2010 to June 30, 2011) when compared to FY10 (July 1, 2009 to June 30, 2010).  This news prompted me to do some simple calculations based on deed recordings here at the Middlesex North Registry of Deeds.  Our system does not contain information on the usage of properties, so we can't tell whether a deed is for a single family home, an industrial building, or a vacant lot, but we do have prices and dates and addresses, so our information is of some use.

To do this analysis, I found the median price of the consideration stated on deeds recorded where the consideration was more than $60,000 and less than $900,000.  This should eliminate all related-party transfers and sales for less than full consideration.  It would also eliminate major developments in the million dollar range which, if included, might skew the numbers.

Here's what I found: the median price of all deeds recorded in calendar 2010 for the entire registry district was $251,000 while the median price for deeds recorded during the first ten months of 2011 was $246,000 which represents at drop of 2%.  When the 2011 number is compared to the median deed price in 2007 ($280,000), we find a decrease of 12%.  Looking back before the real estate boom commenced, back to 2002, we find a median deed price of $249,900 which is almost exactly the same as the current median price.