The traditional back-to-school season didnt slow buyer activity
in September as pending home sales went up over 35 percent from the
same month last year, according to The Massachusetts Association of
REALTORS (MAR). The need for new clothes, notebooks and backpacks
for back-to-school didnt keep Massachusetts home buyers away from
making accepted offers in September, said 2015 MAR President
Corinne Fitzgerald. People continue to want to live in the Bay
State and the market reflects that demand.
Sales gains were experienced in every region of the US,
especially the Northeast. Looking more specifically to the Greater
Boston region, new listings were up 10.9 percent for single-family
homes and 11.3 percent for condominiums while closed sales also
increased for both single-family homes and condominiums.
The job market has shown continual improvement, jobless rates
are down, real average hourly and weekly earnings have been up and
there has been good news in new household formation. The Greater
Boston Association of Realtors (GBAR) reported that we are in the
midst of one of the healthiest housing markets in the past 15
years.
Greater Boston Single-Family Market
Overview
| September 2014 | September 2015 | +/- | |
| Closed Sales | 1,066 | 1,226 | +15.0% |
| Median Sales Price | $423,450 | $455,000 | +7.5% |
| Days on Market Until Sale | 67 | 64 | -4.7% |
| New Listings | 1,839 | 2,040 | +10.9% |
Last months sales volume is the second highest on record for the
month of September in Greater Boston, topped only by the 1,227
homes sold in September 2004. The current median selling price of
$455,000 reflects todays low inventory levels, improved optimism
about the economy and housing market, and pent up demand from
millennials looking to transition from renting to homeownership. It
is surely a sellers market.
Greater Boston Condominium Market Overview
| September 2014 | September 2015 | +/- | |
| Closed Sales | 862 | 897 | +4.1% |
| Median Sales Price | $414,500 | $428,500 | +3.4% |
| Days on Market Until Sale | 53 | 52 | -2.8% |
| New Listings | 1,277 | 1,421 | +11.3% |
The demand for condos remains to be strong throughout Greater
Boston as entry-level buyers have begun to convert from renting to
homeownership and overseas investors and empty-nesters are looking
to downsize or relocate to Boston. Current buyer demand is not
being met due to a lack of listings once again proving to be a
sellers market like the single-family home market. The number of
sales would likely be higher if there was a larger number of condos
available throughout the area.
“September home sales bounced back solidly after slowing in
August and are now at their second highest pace since February 2007
(5.79 million),” stated Lawrence Yun, Chief Economist of the
National Association of Realtors. “While current price growth
around 6 percent is still roughly double the pace of wages,
affordability has slightly improved since the spring and is helping
to keep demand at a strong and sustained pace.” This being said,
more households had the confidence to close on a home in the month
of September.
Due to the stock market correction in August, upcoming closed
sales were placed into question. However the MAR President stated
that The market isnt slowing down and REALTOR confidence reflects
that. While the August stock market correction was a question mark,
REALTORS who are working with buyers and sellers every day, dont
feel there will be any significant impact on closed sales.
About the Greater Boston Association of
Realtors: The Greater Boston Association of REALTORS
(GBAR) represents over 6,500 real estate professionals throughout
the Greater Boston and Eastern Massachusetts area and is one of the
local boards of the National Association of REALTORS the largest
trade association in America. GBAR provides professional
development courses, standard forms, legal reports and updates,
brokerage counseling, legislative and regulatory representation,
ethics, mediation and arbitration services, as well as recognition
awards.
Sources: Greater Boston
Association of Realtors, Massachusetts Association
of Realtors, National Association
Realtors