Slower economy hits housing demand, but prices rise

WALTHAM — The weakening economy and a resultant decline in consumer confidence is reducing the demand for housing in several communities throughout the Bay State, the Massachusetts Association of Realtors reported. Compared with the same period last year, sales of detached single family home sales declined by 6.4 percent in the second quarter, the MAR said. Sales in the second quarter this year were 11,092 compared with 11,850 houses in the second quarter of 2000. However, condominium sales increased slightly in the second quarter this year by 0.7 percent, from 3,380 last year
to 3,405 this year. Prices for detached, single-family homes continue to rise to an average of $305,405 in the second quarter this year, compared to $284,891 in the same quarter last year, the MAR reported. Also, for the first time, the average price of condos has exceeded $200,000 at $210,258 in the second quarter this year, compared with $173,322 last year.