Home prices throughout the state continued to rise in July, but the number of actual home sales has decreased for the first time this year.
New figures by The Warren Group show that buying a house is not an easy feat. The median price of a single-family home in Massachusetts has climbed 2.7% in July, to $369,000 and condos have climbed 3.7% to $350,000.
Despite this increase in price, the numbers of homes sold during the month fell by 12.5%, with fewer property owners listing their homes for sale.
Other reports have supported these claims, with a report by the Massachusetts Association of Realtors showing that the number of single-family homes listed for sale this July was down 29% compared to the same time last year.
This decline in inventory of available properties has been going on for 54 straight months according to the reports.
Due to a decrease in inventory, buyers are seeing an increase in prices and intense competition with homes selling at a much faster rate.
Without a boost in supply this trend is suspected to continue throughout the end of the summer.
The speed of the current housing market is no secret, but depending on what neighborhood you’re buying or selling in, this speed can vary.
NeighborhoodX has put out a report looking at the speed at which condos in various Boston neighborhoods have sold.
By analyzing transactions from various Boston neighborhoods in the month of July and looking at data from the number of days condos were on the market, they were able to create a list of the fastest-selling neighborhoods.
Price also played an important factor in this analysis. The neighborhoods where condos spent the fewest days on the market had an average price of $450,000. The average selling price in Back Bay where the average days on the market were the longest, was $1.7 million.
Massachusetts was followed closely behind by a few other New England states, including Connecticut, Vermont, New Hampshire and Maine, all in the top 10.
Across the specific rankings Massachusetts was ranked number one for the highest math test scores, highest reading test scores, number two for the highest average ACT scores and number two for the safest schools.
When searching for your new home as a family it is important to consider the quality of the school district and public schools throughout the area you are moving into.
Our advisors can provide guidance on finding a new home that suits all of your families’ needs.
The first quarter of 2016 has continued to promote both a Buyer’s and Seller’s market. Low interest rates drive both of these markets from a price and interest rate standpoint for the seller and from both an affordability standpoint interest rate wise for the buyer. Prices rising due to lack of supply, especially in downtown Boston, combined with the lower interest rates increase the buyer’s “buying power” for a home.
Recently, the Federal Reserve Bank increased the funds rate, dropping 30-year fixed mortgage rates to a near all-time low in Q1 of 2016. So what does this mean for the average homeowner in Boston and the surrounding area? Simple: the time to consider home ownership is now while interest rates are low. In addition, if you are thinking about selling your home, your future buyer has greater buying power today so the time to sell may also be now for you.
It isn’t a coincidence that mortgage companies and banks are experiencing record high volumes for both purchases and refinances. The Boston market in particular is currently undersupplied to meet the high demand for new inventory in several of Boston’s most exciting neighborhoods. Fenway and the South End that are development hot spots for luxury-style condos including Pierce in Fenway and Siena, the sister project to Sepia, in the South End. A number of other new developments that are in the planning stages in Boston.
The bullish mindset of buyers in Massachusetts has led to the development of other suburban neighborhoods that have not traditionally seen a high volume of sales transactions for new homeowners. New properties in the MetroWest area namely Framingham, Natick, and Wayland, are also seeing higher rates of ownership for new construction. For example, Montage in Framingham has sold over 80 homes in the past year alone for both attached and detached condo product.
This is not coincidence. With rates for 30-year fixed rate loans at 3.72% and 15-year fixed rate loans floating around 3.05%, it only helps fuel the trend. National Housing Starts, a critical indicator of economic strength, were up 5.2%, much higher than expected for February 2016. Year-over-year, Housing Starts are up 30.9%, per the U.S. Census Bureau. In addition, with the stock market volatility continuing to cause investors a high level of discomfort, more and more investors are looking to put their money into something “tangible,” further fueling the real estate market in a positive direction.