The Lamacchia Housing Report presents overall home sale statistics and highlights the average sale prices for single families, condominiums, and multi-family homes in Massachusetts and Southern New Hampshire for April 2017 compared to April 2016. It also looks at other metrics in Massachusetts like Homes Listed and Pending, as they are often the best indicators for predicting future trends in the market.
Massachusetts April Home Sales Down 2.83%
Massachusetts home sales decreased almost 3% in April 2017, which contrasted March 2017’s 11% increase. Prices rose slightly, with an increase of just under 3%.
So far, 2017 has been up and down – January started off the year very strong, then February home sales fell in every category. In March, we were back up and now in April, we are down.
Though we saw a slight increase in the number of multi-families sold (up 1% from 568 in 2016 to 575 in 2017), the number of single families and condos decreased from year to year (down 6% and 1% respectively).
Conversely, the average price increased in every category, and an overall increase of just under 3% – rising from $397,502 in April 2016 to $409,090 in April 2017. Category to category there weren’t any huge standouts; multi families had the largest increase in price (up 9% from $400,366 in 2016 to $436,601 in 2017), while single-families had the least (up 1.48%, from $445, 245 to $451,814).
Homes Listed for Sale:
There were 10,682 homes listed for sale in Massachusetts in April 2017 compared to 11,779 in April 2016 which represents a 9.3% decrease. This number is up from March 2017, however, by 4.3%.
From May first to the 15th, however, the number of homes listed is up 3.14% from last year which is hopefully an indicator of rising sales in the months to come.
Pending Home Sales:
There were 9,417 homes that went pending in April 2017 in MLSPIN compared to 10,795 in April 2016, which represents a decrease of almost 13% for the third month in a row.
As of May 15th, however, pending sales were up 8.67% from last year at the same time, indicating that the market’s activity could be stronger in the months to come.
Southern New Hampshire Home Sales Down 3.46%
The number of properties in Southern New Hampshire fell 3.46%; almost exactly the same amount as it did in March. Condos fell the most (7.57%, from 251 to 232), but were closely followed by single families (4.59%, from 675 sold in 2016 to 644 sold in 2017).
Average prices increased an almost shocking amount when considering how the rest of the categories performed – over 22% – from $260,639 to $319,148. Single families and condos saw significant increases in average prices from 2016 to 2017. Single families rose 11.8% from $291,214 to $325,592 and condos’ average price increased an astonishing 73.5% from $203,976 in 2016 to $353,951 in 2017. Heading in the other direction were the prices for multi-families which decreased 21% from $247,231 to $195,133.
With both pending and listed numbers down from last year in April, it seems that sales will be down in May. But it could go the other way if you compare April’s pending and listed numbers to March 2017, which shows an increase. As well, with these numbers up from the first to the fifteenth of this month, we can hope that June will produce higher sales and will more than likely stay around the same in terms of average sale price. As you can see in the graph above which depicts inventory levels in 2016 and 2017, though the numbers for 2017 are down, they’re following the same trend in movement, which then projects that next month will see a general increase.
There are still plenty of buyers out there looking for homes. The only thing we should keep in mind is that typically May, June, and July listings sit slightly longer on the market because the number of homes listed increases and that swings the sale pendulum slightly more into the buyer’s favor, as the selection is greater and the prices drop. We are at the very beginning of the market shift that we explained in our recent post. Click here to read more.
Data provided by Warren Group & MLS PIN and compared to prior year.