Home Sales Rise in Some Communities

Observers at a loss to explain why downward trend doesn’t hold

By Megan Woolhouse, Boston Globe, Aug. 26, 2010

Housing sales plunged to a 20-year low in July in Massachusetts, but tell that to buyers in Cohasset. // Real estate agent Tom Hamilton sold a $2 million beachfront cottage in July. And last week two Boston couples signed contracts on homes in the town, for an additional $2 million in sales. No wonder this week’s report that home sales in Massachusetts for July plunged 26 percent didn’t ring true for Hamilton.

“When I saw the sales numbers, I said, ‘That is completely inconsistent with the July we had,’ ’’ Hamilton said. “Business is good. Business is very good.’’

Cohasset is among a handful of Greater Boston communities that bucked a state and national trend and reported increased home sales during the month of July, compared with the same period last year, according to Warren Group, which tracks real estate data. Single-family home sales in Cohasset were up 130 percent in July, and in Norwood, up 117 percent. Bedford, Hingham, and Winchester were among a few other towns that notched notable upward sales figures.

But in most communities in Massachusetts and across the United States, housing sales have either come to a standstill or dropped dramatically, following the expiration of the federal home buyers tax credit. The magnitude of the decline in sales was so great and so unexpected that many housing specialists and economists worry it might signal a broader slowdown in the US economy.

Of course, the July report represents only one month of sales, and Barry Bluestone, dean of the School of Public Policy and Urban Affairs at Northeastern University, cautioned against reading too much into the numbers. For many communities, the overall increases were relatively small and occurred in a housing market that is changing month to month.

“You’re only seeing an increase from what were relatively low sales levels,’’ Bluestone said of the growth.

Moreover there is no obvious pattern to the sales figures. Neighboring communities with similar characteristics, such as strong school systems, had vastly different selling climates in July. While Winchester was up 30 percent, nearby Lexington, for example, saw a steep 35 percent decrease in single-family home sales in July, from 54 to 35.

The differences between the two communities can be more nuanced. For example, Sven Anderson, a Remax broker who sells in both towns, said Lexington properties tend to be on bigger lots and newer than those in Winchester. Lexington has more homes for sale, which afford buyers more time to decide. In Winchester, he said, homes come up for sale less frequently, so when they do, they go quickly.

He is not surprised by Winchester’s attraction, saying its compact size, amenities, and proximity to Boston, including two train stations that can whisk commuters into North Station, are easy selling points.

“It gives us an insulated world,’’ Andersen said. “You’re not in Newton, where it’s big and there are all these little villages, like Waban or Newton North.’’

In Newton, single-family home sales in July dropped 29 percent, to 67 from 95 sales.

Yet the Newton real estate market isn’t exactly hurting. The city spent about $200 million on a new high school, one of the most expensive in Massachusetts, and the median price for a single-family home remains a hefty $775,000.

“Newton has always been one of these places with a steady flow of people who want to live there,’’ said Alex Coon, market manager for Redfin.com, a real estate company. “People are willing to spend $700,000 on a house there that’s worth $120,000 just 12 miles away.’’

Neighboring Brookline, meanwhile, experienced a 20 percent increase in July sales — 24 sales this year compared with 20 last year.

Coldwell Banker realtor Eric Glassoff said he has sold a steady stream of condos and homes in the last eight years. He believes it is because Brookline is close to the Longwood medical area and has a steady supply of doctors looking for housing. There are also students, college professors, and young professionals who seek out the area, he said, because of its bustling shops and easy access to public transportation.

“Brookline is unique,’’ Glassoff said. “It’s pretty close to being recession-proof.’’

And some towns that had a cool July remain nonetheless a hot destination for buyers. Coon cites Arlington, which for the past several years has been especially attractive to first-time home buyers able to spend between $500,000 and $800,000 for a house. While demand for homes there remains high, Coon said, he noted that sales in July dropped to 35 from 49 a year earlier.

“The numbers are tricky,’’ Coon said. “There’s a lot of schizophrenia in the marketplace and everything is moving in a bunch of different directions.’’

Megan Woolhouse can be reached at mwoolhouse@globe.com.