Central Massachusetts’ Housing Market Beginning To Show Growth
Saturday, November 09, 2013
Data released by the Federal Housing Financing Association showed an increase in the housing price index for Worcester in the last two quarters. "There was a sudden growth," said Joy Rapsomanikis of HJ Realty Group in Worcester. "We were really busy over the summer. The right priced house moves quickly, and buyers knew this."
The region has not seen two consecutive periods of positive indexing since the last two quarters of 2006. The index saw record lows in 2008, during a time of worldwide economic decline, but a slow and steady climb upwards has finally net positive results.
"You definitely see it moving in the right direction," said Michael Barbara of Real Living Barbara Associates in Worcester. "Central Massachusetts has seen an increase in transaction volume, and a slight stabilization of home prices."
Nationally, there continues to be a growth in housing sales. The U.S. Department of Housing and Urban Development reported the percentage of new residential sales rose in the month of August of this year by 12.6% over the same month last year.
"In general, we are operating in a much more optimistic marketplace." said Erika Hall of Keller Williams Realty in Worcester.
Favorable Markets in the Area
While there is a greater amount of overall movement on the housing market, the area is still very much a seller's market. "More desirable towns around Worcester have a low inventory of available houses," said Barbara, "which would favor the seller."
"We are seeing many more multi-offer wars, which is refreshing," said Rapsomanikis, of the current climate. "We hadn't seen that in a while."
And it is not only move-in ready homes that are being bought up quickly. "Investors are still looking for fixer-uppers, and even those will move quick if priced right." said Hall.
The Home Improvement Research Institute saw total sales of home improvement products increase by 5.4% in September over their March estimates. They project this trend to continue, and average at an increase of around 6.9% for the next two years.
Going Smaller Becoming Big
Worcester realtors addressed the current trends in downsizing -- and "right-sizing."
"Downsizing is less prevalent due to home owners not having the necessary equity available after the market declined," Barbara. Rapsomankis offered her perspective, as well. "A lot of people can't maneuver too much right now, so they either have to have a short sale or stay put."
"This year we've seen Baby Boomers on the move, and they are doing what we call 'right-sizing'," said Hall, "who are looking to move out of a large family home now that they have two or three empty bedrooms and are paying to heat a much larger house than they need."
With a number of 'boomerang children' of Generation Y moving back in with their parents after college, a greater number of larger homes will be on the market in the coming year.
"A new construction trend we've seen this year is multi-generational homes with in-law suites," said Hall, "We are not sure who will be absorbing these homes already on the market."
**
The index saw record lows in 2008, during a time of worldwide economic decline, but a slow and steady climb upwards has finally net positive results. "You definitely see it moving in the right direction," said Michael Barbara of Real Living Barbara Associates in Worcester, "Central Massachusetts has seen an increase in transaction volume, and a slight stabilization of home prices.
Nationally, there continues to be a growth in housing sales. The U.S. Department of Housing and Urban Development reported the percentage of new residential sales rose in the month of August of this year by 12.6% over the same month last year. "In general, we are operating in a much more optimistic marketplace." said Erika Hall of Keller Williams Realty in Worcester.
Favorable Markets in the Area
While there is a greater amount of overall movement on the housing market, the area is still very much a seller's market. "More desirable towns around Worcester have a low inventory of available houses, said Michael Barbara, "which would favor the seller." This makes it challenging for someone who is looking to buy a home where others may also be looking. "We are seeing many more multi-offer wars," said Rapsomanikis, "which is refreshing. We hadn't seen that in a while."
And it is not only move-in ready homes that are being bought up quickly. "Investors are still looking for fixer-uppers, and even those will move quick if priced right." said Hall. The Home Improvement Research Institute saw total sales of home improvement products increase by 5.4% in September over their March estimates. They project this trend to continue, and average at an increase of around 6.9%, for the next two years.
Going Smaller Becoming Big
Nationally, a continuing trend in housing is more people looking to downsize. Average home size doubled from the 1960s to the 2000s, but in the past few years there has been a movement by builders and new homeowners to scale back. In Worcester, however, there is much less seen of that trend and more and more buyers are looking to move laterally. "Downsizing is less prevalent due to home owners not having the necessary equity available after the market declined." said Michael Barbara. "A lot of people can't maneuver too much right now," said Rapsomanikis, "so they either have to have a short sale or stay put."
"This year we've seen Baby Boomers on the move, and they are doing what we call 'right-sizing'," said Hall, "who are looking to move out of a large family home now that they have two or three empty bedrooms and are paying to heat a much larger house than they need." This movement en masse by the Baby Boomer generation is seen as delayed, as many of the 'boomerang children' of Generation Y ended up moving back in with their parents after college. This will leave a much greater number of larger homes on the market in the coming year. "A new construction trend we've seen this year is multi-generational homes with in-law suites," said Hall, "We are not sure who will be absorbing these homes already on the market."
Related Slideshow: 10 Most Expensive Properties For Sale In MA
Take a look at some of the highest priced properties for sale right now in Massachusetts...
#10: 261 Park Lane
#8 (T): 45 Little Neck
#8 (T): 477 Beacon St.
#7: 88 Beacon Street
#5 (T): 35 North Neck Roa
#5 (T): 183 Bay Street
#4: Charles River Street
#3: 144 Edmunds Road
#2: 9 Drumhack Road
#1: 45 Strawberry Hill St
Related Articles
- Elizabeth Warren Lays Out Housing Finance Reform Priorities
- Grace Ross: Who Needs Shelter from the Worst Housing Crisis of Our Lifetime?
- Housing Advocates Say Settlement is Not Enough
- How Affordable Is Worcester Housing: New Research Bureau Report
- Mass Housing Market Still Attractive Despite Foreclosures
- NEW: MA Housing Sales Up in July
- NEW: MA Home Sales on the Rise in May Monthly Housing Report
Delivered Free Every
Follow us on Pinterest Google + Facebook Twitter See It Read It