Saturday, March 30, 2013

Demand For Homes Outpaces Supply Of Home For Sale

The Massachusetts Association of REALTORS® (MAR) reported this week that a lack of inventory pushed the number of closed home sales down in February after 19 months of increase. Median home prices were up for the fifth straight month. Unlike single-family sales, both condominium median prices and closed sales were up in February.
For the month of February, 2,168 single family homes sold, down 5.0% from 2,282 from the previous year. This is the first time in 19 months that home sales have gone down. Buyers are lining up to take advantage of the low interest rates. Rising rents continue to push buyers into the market.
The condo market actually saw a 1.7% increase over the one year period, selling 861 compared to 847. The  median selling price was $257.5, +12.9% over $228.0 in February 2012.
We are seeing more units starting to come on the market in the downtown markets with the demand being so high and supply low and anticipate that the suburbs will follow suit. Many buyers are coming to open houses with offers in hand to open houses or writing them not soon after. Buyers know if the like something then they have to move on it and bidding wars are often the case on hot properties.
“Potential sellers are keeping their homes off the market because they expect prices to rise through the summer and they’re waiting for the right time to sell,” said Barry Bluestone, founding director of Northeastern University’s Center for Urban and Regional Policy. “The real problem is not the demand side, it’s the supply side right now. You can’t have sales rise if no one is selling. I expect a large supply to come on the market by late summer as people see prices improve.”

                                               South Boston Condo Market Snapshot

Marshfield Single Family Home Market Snapshot

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