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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."

 

 
 
 

Latest from the Blog

  • Massachusetts Pending Home Sales and Median Price Up Again in June

    The Massachusetts Association of Realtors® (MAR) reported today that single-family pending home sales were up over nine percent in June from last year. Pending condominium sales were also up more than 12 percent. The median price for both single-family homes and condos saw a hike, with the single-family median price rising over the $400,000 mark. Realtors® confidence both in the market and in home prices dipped slightly in June. This month’s “Hot Topic” question finds that the majority of Realtors® surveyed have had at least one transaction that was an all-cash deal (i.e. no mortgage involved) since the beginning of the year.

    June Pending Sales: 

    Single Family June 2017 June2016 % Change
    Sales 6,723 6,128 9.7%
    Median Price $410,000 $380,000 7.9%
    • Pending sales have been up 51 of the last 52 months 
    Condominium June2017 June2016 % Change
    Sales 2,596 2,307 12.5%
    Median Price $370,000 $349,900 2.9%
    • Pending sales have been up or flat 20 of the last 22 months 

    “The increase in homes put under agreement this month may be a positive sign for a spring market that has suffered plummeting inventory,” said 2017 MAR President Paul Yorkis, president of Patriot Real Estate in Medway. “However, median prices have continued to rise, which can push some buyers out of the market.”

     
    Realtor® Market and Price Confidence Indexes: 

    Confidence Index June2017 June2016 %Change
    Market 80.73 80.97 -0.29%
    Price 71.79 73.87 -2.82%
    • The Realtor® Market Confidence Index went down for the first time in 27 months
    • The Realtor® Price Confidence Index went down for the first time in six months
    • 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  

    “The Realtor® Market Confidence Index has dipped year-over-year for the first time in over two years, indicating that Realtors® are growing concerned about some of their buyers being able to succeed in this market,” said Yorkis. “However, both indexes reveal that ultimately Realtors® remain positive. We just need to see more inventory to keep up with the demand.”

    With home inventory being as tight as it is, you want to give yourself every advantage if you are thinking of buying a home in Massachusetts. For the best possible experience, be sure to work with an agent who is a member of the Massachusetts Association of Buyer Agents.