Sales of single-family homes in Massachusetts plummeted by 28 percent last month when compared to October 2009, but median prices continued to rise.
The Warren Group, a Boston organization that tracks real estate markets, said Tuesday the continuing drop in sales is due to the expiration of the federal homebuyer's tax credit and expects sales to suffer for the rest of the year.
"The first 10 months of this year, sales of single family homes are still up 2 percent, so we're not having a worse year than last year, it's just that sales were loaded into the first half of the year," said Warren Group CEO Tim Warren.
The Massachusetts Association of Realtors said although conditions for buying a home are good, including low interest rates, stable prices, and a rising employment rate, consumers are still not confident in their personal finances to take the plunge.
Both groups said the median price of single-family homes crept up 3 percent to the $290,000 range, the 12th consecutive month of higher prices according to the Realtors.
This program aired on November 23, 2010. The audio for this program is not available.