Strong buyer demand paired with a robust economy and near
record-low mortgage rates has led to increase sales and prices of
single-family detached homes and condominiums in May throughout
Greater Boston, according to data from the Greater Boston
Association of REALTORS (GBAR).
In May, sales of detached single-family homes improved on an
annual basis for the twelfth consecutive month increasing 17
percent from the 1,060 homes sold in May 2015 to 1,240 this year.
This represents the highest single-family home sales total for May
since 2004 when there were 1,269 homes sold.
Greater Boston Single-Family Market
Overview
| May2015 | May 2016 | +/- | |
| Closed Sales | 1,060 | 1,240 | +17.0% |
| Median Sales Price | $520,000 | $530,000 | +1.9% |
| Days on Market Until Sale | 59 | 58 | -1.7% |
| New Listings | 2,532 | 2,083 | -17.7% |
Condominium sales also rose 14.6 percent last month, from 958
units sold in 2015 to 1,098 this year. Last months condo sales
total was the highest since 2013 in Greater Boston when 1,129
condos were sold in May. Both closed sales totals are above
historical averages for the month of May in Greater Boston.
Greater Boston CondominiumMarket Overview
| May 2015 | May 2016 | +/- | |
| Closed Sales | 958 | 1,098 | +14.6% |
| Median Sales Price | $463,950 | $477,015 | +2.8% |
| Days on Market Until Sale | 45 | 46 | +2.2% |
| New Listings | 1,662 | 1,429 | -14.0% |
We have noticed a jump in the number of property owners taking
advantage of the equity in their homes to re-enter the market and
either downsize or trade up to the middle and upper home sales
price. Together with high consumer confidence and a healthy job
market in Greater Boston, its made for an extremely busy spring
selling season, especially in May, said GBAR President Andrew
Sarno. Although inventory levels are not what wed like them to be,
buyer optimism remains high and with mortgages rates as low as they
are and prices appreciating at very modest levels in both markets,
we are looking at a busy summer throughout the region.
The largest statistical change from May 2015 to last month came
with the decline in inventory of homes for sale in both markets. In
the single-family market, inventory dropped 17.4 percent from 3,533
homes for sale in May 2015 to 2,918 last month. Likewise in the
condo market, inventory fell to 1,413 from 1,937 last year,
representing a 27.1 percent decrease. These numbers represent the
largest decrease on an annual basis for the past year.
With the continued inventory shortage in our region its no
surprise that many homes are being sold at or above their original
listing price as buyers are eager to close on a home before any
additional price increase said Sarno. We often see bidding wars
drive up costs and price out buyers when inventory is lacking;
however with a modest rise in sales cost and an increase in pending
sales this month buyer activity remains high despite these
challenges.
Notably, pending sales in both markets increased last month. The
single-family home market pending sales increased 6.1 percent from
1,760 in 2015 to 1,868 last month, while the condo pending sales
jumped 3.0 percent to 1,337 from 1,298 in May 2015.
Source: Greater Boston Association of Realtors. Findmore information
here.
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.