buying a home

Mass Home Prices Rise as Inventory Decreases

Home prices blog

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.

Need help selling or buying a home? Contact our advisors for expert advice and exclusive listings. 

Breakdown of the Fastest Selling Boston Neighborhoods

Roxbury

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.

The final list ranges from 24 days on the market to 69 days, Brighton, Allston and Dorchester tied for being the shortest and Back Bay being the longest.

Right in the middle were Jamaica Plain and Beacon Hill with an average of 39 and 41 days on the market.

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.

View current available listings by neighborhood here or contact our advisors for advice about the current market. 

View the full breakdown below:

Boston neighborhoods condo breakdown

Credit: NeighborhoodX

High Home Sales Compete With Low Inventory

Fort Point Housing Construction

Home sales are at a high so far this year, but this doesn’t mean that buying a home has gotten any easier.

Houses are being sold at the fastest rate since 2007, making buyers work extra hard to get a house under contract, according to Realtor.com.

The biggest challenge that has come along with this is a low inventory of available homes, which takes away from making more sales.

Buyers are having trouble finding a home that that met their needs and buyers are reporting similar issues.

This doesn’t come as a surprise, with 13% more people looking to buy a home this summer and 5% fewer homes actually available for sale.

The low level of inventory combined with the speed that homes are being sold and high prices all contribute to becoming a seller’s market.

However, this doesn’t mean it is easy for sellers. The biggest issue sellers are facing is time.

As more owners decide to sell their homes and prices recover and mortgage rates remain low, this process will be slightly easier.

The other main problem for potential sellers is finding a home to purchase. Most sellers aren’t willing to risk selling their home without already having a new one under contract first.

Remodeling and home improvement projects also slow down the selling process, even as this area of the industry has been seeing a boom.

The average peak for sales is typically June or July, however with the combination of low mortgage rates, strong demand and an increasing number of buyers and sellers, this may extend the peak.

If you’re thinking about buying then now is the time to begin the process. We provide services for buyers and sellers.

Contact our advisors today for expert advice in buying or selling your home. 

Massachusetts Public Schools Best in Country

Boston Public Schools Blog

Good news for Massachusetts residents, especially those with children, public schools throughout the state have been ranked the best in the country.

Massachusetts tops the ranks by WalletHub, analyzing a number of different factors including test scores, teacher to student ratios and dropout rates.

View the ranking of each state by clicking on the map below:

Source: WalletHub

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.

Contact us today to begin your home search. 

Massachusetts Home Prices Reach Record Peak

Beacon Hill

Massachusetts home prices are hitting record breaking peaks, according to a report by The Warren Group.

The median sale price for a single family home in Massachusetts reached $372,000 in June, which is up 1.9% year-over-year and at a record breaking level.

According to the report this is the highest monthly median in history, beating out the record high from 2005 of $370,000.

Condo prices are also on the rise, with a record median of $345,000 which is up 4.5% from last year.

Even with the record high prices the summer months remain the strongest for closings and aren’t expected to slow.

A total of 7,387 single-family homes sold in June, which is up 14.9% from last year.

While these statistics on Massachusetts home prices are positive for sellers, they leave buyers looking at a stronger competition and a fast moving market.

This also means that buyers looking for a more expensive home will have more luck than those looking for cheaper or entry-level homes.

Contact our advisors for more information about buying or selling property and the current Massachusetts market. 

Prices of Greater Boston Homes Are Rising

Greater Boston Suburbs

Home prices are rising throughout the towns that make up Greater Boston, which is good news for homeowners, but bad news for buyers.

Towns including Marlborough, Revere, Weymouth and more have seen their median home prices rise about $300,000, according to Boston.com.

Woburn and Braintree, which have often been seen as more affordable locations have now seen their median prices go further into the $300,000’s or even $400,000.

As the housing market makes it even harder for middle-class buyers in these towns, homeowners looking to sell their houses aren’t complaining about the increase.

This rise in Greater Boston means that suburbs that were often seen as cheaper options are now catching up with the rest of the Boston area prices.

In Marlborough, home values have risen 16%, with the median house price at $331,000, according to statistics by The Warren Group.

Weymouth has also seen a 12% rise, to $333,625 as the median home price.

Inner suburbs such as Revere are seeing the same shift, with an 18% increase to $335,000.

Buyers are moving out to these further suburbs as alternatives from more expensive zip codes, however that is pushing the price increase.

To view listings in these areas click here.

Low Interest Rates Make Home Ownership an Affordable Option in the Boston Area

South Boston

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.

Q12016interestrates

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.