MABA President Comments on April Housing Numbers
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."