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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

  • 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.