Low Inventory Drives Up MA Home Prices
Wednesday, March 27, 2013
According to The Warren Group, a total of 2,246 single-family homes sold across Massachusetts in February, a 5 percent decrease from the 2,366 sales recorded in February of last year. Last month was the first since December 2011 that home sales posted a decrease.
“Two factors caused this modest drop in February: low inventory and a comparison with a strong previous year of sales,” said Timothy M. Warren Jr., CEO of The Warren Group. “Even so, I’m still hopeful for a strong spring market. As more sellers list their homes in the spring, activity will pick back up.”
Despite the February decrease in sales volume, overall sales are up close to 1 percent from a year ago, with a total of 4,833 transactions completed in the first two months of the year, up from 4,802 during the same period in 2012.
Prices on the rise
Prices, however, are another matter entirely. According to The Warren Group, median price for a single-family home rose more than 12 percent last month to $275,000 from $245,500 in February 2012. Year-to-date median home prices are up roughly 12 percent as well, increasing from $250,750 last year to to $279,000.
“With such low inventory, we’re seeing bidding wars – homes selling above the asking price,” Warren said. “As prices rise, more sellers will begin to list their property which in turn pumps up sales volume.”
The low inventory may be due at least in part to the high volume posted in January, when sales rose more than 10 percent to 2,680, the highest level for the first month of the year since 2007 when 2,953 single-family homes were sold.
Meanwhile, condominium sales posted a modest increase last month. There were 925 condo sales in February, up almost 1.4 percent from 912 sales during the same month last year. Year-to-date condo sales also rose almost 5 percent to 1,901 from 1,817 last year.
The median price for condos sold statewide in February increased more than 6 percent to $245,000, up from $230,525 during the same month last year.
Related Articles
- NEW: MA Home Sales and Median Prices Up in November
- MA Home to Highest Percentage of High Tech Jobs in U.S.
- Buying a Home 52 Percent Cheaper than Renting in Worcester
- NEW: Blackstone Valley Home and Business Expo This Weekend
- Mass Boasts Best July Home Sales in Seven Years
- Worcester Energy Offering Thousands in Rebates for Home Upgrades
- NEW: September MA Home Sales Up for 15th Straight Month
Follow us on Pinterest Google + Facebook Twitter See It Read It