The year 2016 has displayed some positive momentum thus far for the real estate market in the Greater Boston area. January had shown a slight decrease in the average price of homes in the Commonwealth while nationally there was an increase by 5.4%. With such a strong history of price increases, this is not an alarming stat for Massachusetts. However, the number of sale transactions in the state of Massachusetts certainly indicated a busy start to the year.
“The low inventory of homes for sale — currently about a five month supply — means that would-be sellers seeking to trade-up are having a hard time finding a new, larger home,” said David M. Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices.
February had shown great increases with the number of sales pending across the nation. In fact, the number of pendings had risen by 3.5% which was their highest level since July of 2015. The increase of pendings had surprisingly seen an uptick despite inventory levels being so tight. Contrary to recent reports threatening a leveling of activity due to higher prices of real estate, the spring has certainly shown its hearty pulse.
“With a mild winter behind us and the spring market beginning to heat up, the year is off to a very strong start,” said Timothy M. Warren Jr., CEO of The Warren Group, in a prepared statement. “Though fairly moderate, the drops in median sale prices for both single-family homes and condos bring welcome relief as the state struggles with high housing costs.”
On a regional level, signed contracts had shown an increase in certain parts of the country including the South, Midwest and the West. Meanwhile, the Northeast had remained somewhat steady as it has for so long.
Recent reports showed that the number of closings were slightly down in February by 7% which actually is not surprising. Considering that the average sale takes one to two months that would bring us back into late 2015 when federal regulations had changed. These modifications had caused a slight hiccup in activity as buyers and real estate professionals adjusted.
Overall the real estate market is still showing great signs of health proving it is a great time to make a move.