NEW: RE/MAX New England 2013 Housing Forecast Projects Growth

Wednesday, January 16, 2013

GolocalWorcester Business Team

The new year looks to be a good one for real estate in New England and particularly in Massachusetts, according to the RE/MAX of New England 2013 Housing Forecast.

Record-low interests rates drove strong growth in year-over-year sales of single-family and multi-family homes and condominiums in 2012.

In Massachusetts, RE/MAX found that single-family and condominium transactions both increased 21.6 percent year-over-year, and multi-family home sales were up 5.3 percent. Meanwhile the median price of a single-family home in the Bay State stayed relatively stable, holding at $287,920.

“The New England housing market finished 2012 on a high note, with each state experiencing strong year-over-year growth in total transactions, and RE/MAX of New England is excited to see that momentum continue in 2013,” said Dan Breault, Executive Vice President and Regional Director of RE/MAX of New England. “As the amount of available inventory continues to shrink, watch for a gradual appreciation in median home prices in the second half of 2013 as the market begins to shift from a buyer’s market to a balanced market which favors both the buyer and the seller.”

Connecticut single-family home sales increased 14.9 percent year-over-year while the median price declined 3.1 percent to $213,873. Condominium sales rose 8.2 percent.

Holding steady at just over $201,000, the average median sales price of a single-family home in New Hampshire remained flat in 2012. Single-family home transactions increased 21.2 percent year-over-year, while condominium transactions grew 19.3 percent. Multi-family home transactions also increased 2.2 percent.

Rhode Island single-family home sales posted the largest year-over-year gains in New England in 2012, up 24.2 percent year-over-year. Condominium sales increased 13.7 percent, and multi-family home sales grew 10.1 percent. Average median price for single-family homes declined 5.9 percent compared to 2011.

Single-family home transactions increased 15.2 percent in Vermont, while the median price declined 2.2 percent. Condominium transactions rose 18.1 percent but the average median price dropped 3.4 percent. Multi-family home transactions virtually doubled, up 49.3 percent while the average median price declined 7.9 percent.

Strong sales during the second half of 2012 mean a shrinking inventory of homes on the market, which is likely to lead to an increase in median prices over the next 12 months.

“Shifting from a buyer’s market to a more balanced market is an important sign that the housing market is recovering in a healthy manner,” said Breault. “This big step in the recovery should instill further confidence in both buyers and sellers.”