Massachusetts Pending Home Sales Hit Record Levels

Massachusetts pending home sales, more specifically – single-family sales – posted their biggest June since the Massachusetts Association of Realtors began tracking the data a decade ago.

The number of single-family homes put under contract last month went up nearly 20 percent compared to the same period last year as 6,253 homes went under agreement, up from 5,221 a year ago. This is the 16th-straight month of year-over-year increases.

Massachusetts pending home sales see record high levels in June despite higher pricesAs demand soared, so did prices. The median sales price of single-family homes put under agreement in June reached $365,000 — that’s a 4 percent increase from $351,000 in June 2013.

Massachusetts Pending Home Sales See Lively Spring

Corinne Fitzgerald, MAR’s president-elect, said in a statement, “June capped off a very lively spring for Massachuesetts pending home sales. This activity should act as another positive sign for homeowners who want to sell, but who have been holding off. With the inventory still low, sellers-to-be would be in a good position to enter the market.”

Pending sales of condominiums also rose in June. The number of condos put under agreement last month increased 13.2 percent to 2,382 units, up from 2,105 in 2013. It’s the most number of condos put under agreement in June since 2005 when 2,587 units were recorded. The median sales price of a condo put under agreement in June rose to $330, 000, up from $320,000 in 2013, a 3.1 percent hike.

MAR tracks Massachusetts pending home sales, also called homes under agreement, which is an indicator of actual housing sales for the next 90 days. A pending sale or a sale “under agreement” is when the buyer and seller agree on the terms of the sale of a home and have a signed purchase and sale agreement, but have yet to close.

To stay abreast of news as it affects Massachusetts pending home sales, as well as Boston area home prices on a daily basis, follow us on Twitter, and be sure to Like us on Facebook!

May Massachusetts Home Sales Down – Prices Up

Rising prices, low inventory and lingering winter weather into March drove Massachusetts home sales down in May.

Single-family Massachusetts home sales fell by 7 percent in May, according to a new report from The Warren Group, marking the fourth consecutive month that sales have decreased on a year-over-year basis.

A total of 4,482 single-family homes were sold in May compared with 4,820 in May 2013. Year-to-date sales are down by 3.8 percent with 15,467 homes sold compared with 16,073 during the same period last year.

Massachusetts Home Sales Down But Prices Up

Massachusetts home sales down, prices are upWhile Massachusetts home sales dropped, prices continued to rise. The median sales price of Bay State single-family homes increased by 4.7 percent in May to $340,000 compared with $324,600 in May 2013. This was the 20th consecutive month of year-over-year price increases. Year-to-date, prices also rose by 6.3 percent to $319,000 compared with $300,000 during the same period last year.

Massachusetts condominium sales remained strong in May with a total of 2,146 transactions completed compared with 2,015 in May 2013. May marked the 11th consecutive month condo sales have increased on a year-over-year basis. Year-to-date sales were also up by 9.3 percent with 7,166 sales completed during the first five months of this year compared with 6,557 recorded during the same period last year.

May marked the 16th consecutive month the median selling price of a condo increased, year-over-year.

We have other articles and tips pertaining to Massachusetts home sales, as well as the Boston area real estate market and rising Boston area home prices. We have tips for buying a home, including things you need to know before, during and after the home buying process. Check out our Boston Home Buying Tips to your right under Boston Real Estate Categories.

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Boston Area Real Estate News – January 2014

Boston Area Real Estate News - January 2014

In our Boston Area Real Estate News for January 2014:

2014: Year of the Repeat Boston Area Homebuyer

2014 Mortgage Fee Hike Postponed

New Year Starts With Disappointing Numbers

 

2014: Year of the Repeat Boston Area Homebuyer

2014: Year of the Repeat Boston Area HomebuyerAs prices continue rising in the new year—albeit at a slower pace—investors will begin to ease back from the market, but repeat homebuyers will be there to pick up the slack, according to Trulia's predictions for the Boston Area housing market in 2014.

Other changes to the Boston Area housing market in the new year include lower affordability, "less frenzied" home-buying, and a shift in the rental market from single-family homes to urban apartments.

The biggest obstacle for potential homebuyers is saving enough money for a down payment. This hurdle was the most commonly cited challenge in a Trulia survey of current renters wishing to own their own home. Fifty-five percent of survey respondents cited this obstacle, and among young adults (ages 18 to 34) the rate was even higher at 58 percent.

The second most common barrier to homeownership is lack of stable employment—cited among 36 percent of all survey respondents and 43 percent of young adults.

The pace of Boston Area home price appreciation will slow in the new year, but rising prices, combined with rising mortgage rates, will take a toll on affordability.

Continued price increases will likely lead more Boston Area homeowners to list their homes for sale, leading to an increase in inventory in 2014.

At the same time, traditional homebuyers will face less competition from investors, and mortgages "should be easier to get" as the new regulatory environment takes shape removing the uncertainty that has made lenders wary.

During the recession, single-family home rentals increased 32 percent, but some believe that several factors will lead to a decline in this trend in 2014. Fewer foreclosures, fewer investor purchases, and loosening credit standards will all contribute to the decline.

 

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2014 Mortgage Fee Hike Postponed

Hike in mortgage fees postponed by incoming FHFA Chief Mel WattPlanned fee increases that would have added to the cost of millions of mortgages will be postponed, maybe even cancelled altogether.

Currently, borrowers seeking loans backed by Fannie Mae and Freddie Mac are set to pay higher upfront fees starting April 1. The fees, ordered by the Federal Housing Finance Agency in December, are meant to help safeguard banks against risky borrowers who might default.

Housing experts say they will add thousands of dollars to the cost of all mortgages insured by Fannie and Freddie, with the biggest hits taken by borrowers with less than perfect credit histories.

The mortgage industry has been bracing for substantial increases in the price of loans in 2014. It is already costing a bit more to borrow money to buy a home lately, as fixed mortgage rates have drifted to the highest level in three months.

The incoming chief of the FHFA, Mel Watt, said he intends to postpone the fees — and perhaps even cancel them — until more analysis is done. The FHFA oversees Fannie Mae and Freddie Mac.

Even with the reversal, however, mortgages will probably get more expensive over the next few months anyway as the Federal Reserve cuts back on its purchases of mortgage backed securities, a program designed to keep interest rates low.

Stay tuned and we'll keep you updated at this website on mortgage rates, and the cost of getting a mortgage when buying a Boston Area home.

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New Year Starts With Disappointing Numbers

2014 is starting off with disappointing numbersWith a new year starting that will surely bring higher interest rates and tighter lending standards, the housing market is already showing signs of a slowdown, as pending home sales for November increased only slightly from the previous month.

The Pending Home Sales Index from the National Association of Realtors is based on contract signings for the purchases of existing home sales. The index inched up 0.2 percent to 101.7 in November, from a downwardly revised 101.5 in October. Most economists were expecting an increase of 1 percent.

The index is 1.6 percent below November 2012 when it was 103.3. The data reflects contracts but not closings.

Total existing-home sales this year are expected to reach 5.1 million, a gain of almost 10 percent over 2012, but should stay at that level in 2014, and then rise to 5.3 million in 2015, according to the NAR.

The national median existing-home price for all of this year will be close to $197,300, up nearly 12 percent from 2012. This median price is projected to rise at a more moderate pace of 5 to 5.5 percent in 2014, and grow another 4 percent in 2015.

October Massachusetts Home Sales Up 19 Percent

October Massachusetts home sales (single-family homes) rose again in October, increasing nearly 19 percent from a year earlier amid shrinking inventory and rising prices, according to The Warren Group.

A total of 4,326 single-family homes were sold in Massachusetts in October, an 18.5-percent increase from 3,649 sales in October 2012. Year-to-date, sales are up more than 7 percent at 42,077, compared to 39,239 during the same period last year.

As Massachusetts home sales volume rose, so did prices. The median price of single-family homes rose almost 10 percent in October to $313,050. This is the state’s highest median price for the month since October 2007, when it was $331,000. The median price for homes sold January through October was $324,900, up more than 12 percent from $289,000 in the prior year.

Other Massachusetts Home Sales Numbers Were Up

Massachusetts home sales were up in October, both single family homes and condominiumsIn other Massachusetts home sales news for October, statewide condominium sales rose 16 percent, increasing to 1,724 from 1,487 a year ago. Year-to-date condo sales are up 5.8 percent to 17,089 from 16,152 during the same period last year.

The median condo price rose to $299,500 in October, a 13-percent increase from $265,000 a year earlier. The year-to-date median price of condos in the Bay State is $295,000, up 7 percent from $267,500 a year ago.

Single-family home inventory at the end of October, fell 19.9 percent to 20,716 listings compared to a year ago when there were 25,877 listings, while the inventory of condominiums was 5,582, down 26.1 percent compared to last year when there were 7,557 listings, according to the Massachusetts Association of Realtors.

Average market time for single-family homes in October was 92 days compared to 114 days in October 2012. Condos stayed on the market an average of 78 days, down from an average of 114 days in October 2012.

To stay abreast of Massachusetts home sales news, as well as news affecting Boston area home sales, stay plugged in with Buyer’s Choice Realty. Get daily tips and news by following us on Twitter, and be sure to Like us on Facebook!

Massachusetts Home Sales Hit Highest Level Since 2005

Massachusetts home sales marked the best September in 8 years, even amid a dwindling supply of available homes for sale.

Massachusetts home sales figures show a total of 4,358 single-family homes sold last month, a 16 percent increase from the 3,739 sales in the year-earlier period, according to The Warren Group.

Prices Up Along With Massachusetts Home Sales

Massachusetts Home Sales and Prices Up in SeptemberAlong with strong Massachusetts home sales, prices swelled as well. The median price of a single-family home rose almost 16 percent to $323,625 in September, up from $280,000 a year earlier.

“September closed sales and prices was another example of buyer demand outpacing housing supply,” according to Kimberly Allard-Moccia, president of the Massachusetts Association of Realtors, in a statement. “Interest rates are still low and qualified buyers are still there, but what we need now to get to full recovery is those sellers who are holding off, to make the commitment to sell.”

The number of single-family homes listed for sale at the start of September was 17,180, a nearly 12 percent decrease from 19,436 for the same time last year, according to the MLS Property Information Network.

Condominium sales also were strong statewide in September as sales rose 12.5 percent to 1,800, up from 1,608 a year ago. The median condo price also increased to $295,250 in September, a 7 percent spike compared to $275,000 a year earlier.

To stay abreast of Massachusetts home sales, as well as Boston area home sales, stay plugged in with Buyer’s Choice Realty. Get daily tips and news by following us on Twitter, and be sure to Like us on Facebook!