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Trends in MA Real Estate

The Massachusetts Association of Buyer Agents (MABA) monitors the state’s real estate market on a regular basis, identifying trends as they emerge and offering insights for prospective home buyers to help them make informed real estate decisions. As part of this effort, MABA issues a commentary – an analysis of market conditions and key factors driving prices – following the release of Massachusetts home sales data each month. Below are MABA's comments on this month's home sales data.

December's numbers and the year end compilation confirm that 2013 was a turnaround year for Massachusetts real estate, with all indicators showing a strong market. Despite an increase in the number of 2013 sales to numbers that almost rivaled 2005 and 2007's sales volume, strong buyer demand exceeded the available inventory for most of last year.

Throughout the year, the number of buyers continued to increase more than the inventory increased over the previous year. Since real estate is all about supply and demand, buyers bid prices up when competing with other buyers for the same home. We expected that buyer demand will exceed inventory well into 2014.

Here are the predictions for the 2014 real estate market from the Massachusetts Association of Buyer Agents:

  • Interest rates will most likely increase between 1/2 and 1 percent by the end of the year
  • Financing will be readily available to those who qualify, however, 10-20% of the buyers that were pre-approved in 2013 will not be able to meet 2014's revised secondary market lending guidelines
  • Private lenders will begin to emerge to fill the financing void for self employed borrowers and those that fall outside of secondary market guidelines
  • Prices will increase between 3 1/2 and 15 percent, depending on the neighborhood
  • Communities with the most desirable school systems will see the biggest gains in appreciation
  • Multiple offers will be the norm for properly priced and presented property listings through the first half of the year in much of the Greater Boston area
  • Outlying areas will see more buyer demand in 2014 than in 2013 as buyers expand their home searches into areas that are more affordable
  • New listings will continue to sell quickly if they are properly priced, presented and marketed
  • The demand for Greater Boston area investment property will continue to be very strong in 2014, however, many investors will become frustrated with the highly competitive buying market and will move their money into other investment vehicles that are easier and faster to purchase (i.e. stocks and bonds)
  • The state-wide volume of sales for 2014 will exceed the volume for 2013
 
 
 

Latest from the Blog

  • Closed Home Sales Down in April After Record Inventory Lows and Rising Prices

    Median Sales Prices Have Seen Year-Over-Year Increases for 19 Straight Months

    WALTHAM, Mass. – May 23, 2017 – The Massachusetts Association of Realtors® (MAR) reported today that low inventory and rising prices caught up to the spring market, with single-family home sales decreasing over eight percent from this time last year. Both single-family and condominium prices saw a hike. Condominium sales decreased almost 10 percent from April 2016.

    April Closed Sales:

    Single-Family April 2017 April 2016 %Change
    Sales 3,735 4,082 -8.5%
    Median Price $362,500 $349,900 +3.6%
    • Closed sales have been down for four out of the last 12 months
    • Median prices have been up or flat for 16 out of the last 17 months
    Condominium April 2017 April 2016 %Change
    Sales 1,455 1,607 -9.5%
    Median Price $345,000 $329,950 +4.6%
    • Closed sales have been down for four out of the last 12 months
    • Median prices have been up or flat for 16 out of the last 17 months

    “With the current trend of plunging inventory and rising prices, the odds were strong that sales increases of the winter market would be unsustainable through the spring,” said 2017 MAR President Paul Yorkis, president of Patriot Real Estate in Medway. “The demand is there; we just need more homes on the market to satisfy that demand.”

    Inventory and Days on Market:

    Single-Family April 2017 April 2016 %Change
    Inventory 13,234 19,392 -31.8%
    Months of Supply 2.7 4.0 -32.5%
    Days on Market 81 107 -24.3%
    New Listings 7,706 8,513 -9.5%
    • 62nd time in the last 63 months of year-over-year inventory decreases
    Condominium April 2017 April 2016 %Change
    Inventory 1,455 1,607 -9.5%
    Months of Supply 2.0 2.8 -28.6%
    Days on Market 60 78 -23.1%
    New Listings 2,640 2,971 -11.1%
    • Inventory down for 16 out of the last 17 months

    “Unfortunately, our existing level of inventory makes it hard for us to meet our current and future housing needs,” said Yorkis. “If we don’t do anything soon, it will have a negative impact on the entire Massachusetts economy.”

    If you are thinking of buying a home anywhere in the state of Massachusetts, it is in your best interest to work with a member of the Massachusetts Association of Buyer Agents. These men and women are dedicated to working exclusively on your behalf to ensure that you have the best possible home-buying experience. Find a MABA agent here.