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Comments from Massachusetts Association of Buyer Agents:

"April's numbers reveal a trend that many analysts have been predicting for a while. As the Echo Boomers stabilize their employment and move into the housing market, the demand for first-time homes has continued to increase, which has increased condo prices to the point that they are fairly competitive with single family homes in some markets. At the other end of the spectrum, the development of pricey higher end condo projects designed to appeal to Empty Nesters has also pushed the average price of a condo up over the past few years. Many of the buyers from both demographic groups prefer to live in areas that are less car-dependant, which has pushed the demand up in those areas that are more densely populated, have more amenities and developed with condos. We expect to see further pressure in this market segment over the next few years.

It is important to note what Tim Warren said about April's home sale numbers reflecting homes and condo closings that were primarily negotiated in February and March during a time of challenging weather conditions that kept many sellers from putting their homes on the market. Due to a severe shortage of inventory in many communities at the beginning of the year, homes that were realistically priced and marketed were snatched up by buyers at a lightning fast pace, many with multiple offers, due to pent up buyer demand that carried forward from 2013.

The numbers are historic and report a generally healthy real estate market. At this time, some MABA members are reporting that they are seeing indications that more buyers are holding the line on the amount of their offers and aggressively priced properties are not receiving quite as many offers as they were earlier this year. We are also seeing that many of our buyer-clients are paying more attention to sales comps than they were last year. With overpriced inventory sitting on the market a bit longer and more inventory coming on this Spring, we may be seeing very early hints that the market may be starting to get a bit more favorable to buyers, especially in areas that are not as desirable for typical Echo Boomer and Empty Nester buyers."

 

 
 
 

Latest from the Blog

  • Pending Sales for Massachusetts Homebuyers Maintain Steady Year-Over-Year Increases for Almost Four Years This February

    WALTHAM, Mass. – March 14, 2017 – The Massachusetts Association of Realtors® (MAR) reported today that ongoing buyer demand pushed pending sales up three percent over last year. Pending sales have been up 47 of the last 48 months, marking almost four years of positive gains in single family homes put under agreement. Realtors® confidence both in the market and in home prices was positive in February. 

     February Pending Sales:  

    Single Family February 2017 February 2016 % Change
    Sales 3,967 3,852 3.0%
    Median Price $330,000 $309,000 6.8%
    • Pending sales have been up 47 of the last 48 months  
    Condominium February 2017 February 2016 % Change
    Sales 1,558 1,566 -0.5%
    Median Price $313,000 $290,000 7.9%
    • Pending sales have been up or flat 17 of the last 18 months  

    “Buyers have been tireless these past four years, showing that the desire to live and work in Massachusetts is strong despite dwindling inventory and rising prices,” said 2017 MAR President Paul Yorkis, president of Patriot Real Estate in Medway.  

     Realtor® Market and Price Confidence Indexes:  

    Confidence Index February 2017 February 2016 %Change
    Market 75.20 68.66 10%
    Price 77.00 75.70 2%
    • The Realtor® Market Confidence Index was up for the 11th straight month
    • Measured on a 100-point scale, a score of 50 is the midpoint between a “strong” (100 points) and a “weak” (0 points) market condition  

    “This is the highest recording Market Confidence Index for the month of February since we began recording the data in 2008,” said Yorkis. “This speaks to the strength of the market this past year, as well as looking ahead to the spring market of 2017."