The Beat Goes on For Residential Market in Massachusetts
Pending single-family homes sales have been higher for 12 consecutive months, while pending sales in the condominium sector have been down or flat four out of the last 12 months, according to MAR.
WALTHAM, MA—The residential real estate market in Massachusetts continues its bullish run with single-family homes under contract in October up 9% as compared to October 2017.
Homes under contract have risen every month so far this year, according to the Massachusetts Association of Realtors. The condominium market did not fall in lockstep with the single-family sector, however, seeing pending sales fall 5.3% in October as compared to a year earlier.
Single-family pending home sales or under contract totaled 5,423 in October 2018 as compared to 4,976 a year earlier. There were 1,916 condo units under contract in October 2018 as compared to 2,024 units in October 2017.
Pending single-family homes sales have been higher for 12 consecutive months, while pending sales in the condominium sector have been down or flat four out of the last 12 months, according to MAR.
The strong demand for housing has fueled increases in residential home values in Massachusetts, MAR reports. At the end of October, the median price for pending single-family homes rose 5% to $390,000, while the condominium median price for units under contract increased 4% to $353,000.
“In between apple picking and leaf peeping, home buyers found time this October to make offers on single-family homes in Massachusetts,” says 2018 MAR president Rita Coffey, general manager of Century 21 Tullish & Clancy in Weymouth, MA. “Prices remain close to that $400,000 mark despite the usual cooling off from the summer market.”
While the homes under contract figures were mostly positive, MAR notes that Realtors report open house attendance has been weaker than normal. In addition, the Realtor confidence levels in the market have fallen somewhat.
MAR’s Market Confidence Index fell nearly 21% from October 2017’s 72.24 to 57.14 for October 2018. The Price Confidence Index dropped 20.53% to 53.93 from the 68.48 level posted in October 2017.
“Confidence in the market and home prices are still positive but waning most likely because of the uptick in interest rates and the ongoing dwindling inventory,” said Coffey. “However, buyers have demonstrated that the demand is still there.”