February 2016 Housing Report – Massachusetts and Southern New Hampshire
The Lamacchia Housing Report presents overall home sale statistics and highlights the average sale prices for single-family homes, condominiums, and multi-family homes in Massachusetts and Southern New Hampshire for February 2016 compared to February 2015. It also looks at other metrics like Homes Listed and Pending, as they are often the best indicators for predicting future trends in the market.
Massachusetts Home Sales up 29%
Overall home sales in Massachusetts were up over 29% compared to February of 2015, while overall average prices fell 2%. There were a total of 4,484 homes sold in February 2016 compared to 3,473 in 2015. This is the ninth month in a row of increased home sales, following a January that started the year strong with sales up 28%.
The category with the largest increase in number of sales was single-family homes, up 32% in sales from 2015. Even condos, the category with the lowest increase in sales, was still firmly in the double-digits however, with number of homes sold increasing from 935 to 1,150, a rise of 23%.
The average price for all homes fell 2%, from $380,125 in 2015 to $371,378 in 2016. This loss was mostly felt in the multi-family home category, which saw average price fall 11%, from $443,035 to $393,650. The only category to see a rise in price was single-family homes, with a just-over 1% increase. The mild winter obviously had a large impact on home sales being up so much. Last winter’s record breaking snow fall very severely slowed down the real estate market.
Southern New Hampshire Home Sales up 60%
Yes we said 60%! There were 653 homes sold compared to 410 sales in February of 2015. Similar to last month’s report, all categories increased in number of sales, though the increases varied widely; single-family homes saw an increase of 66%, condos an increase of 56%, and multi-families an increase of only 3%.
Unlike last month, average prices stayed generally strong, with an overall average price increase of 6%. Single-families were the only ones to see a drop, down in average price 1%. Condos saw an average price increase of 23% ($176,844 in 2015 to $217,921 in 2016) and multi-families an increase of 22% (from $224,011 to $273,783).
Homes Listed for Sale:
There were 6,938 homes listed for sale in Massachusetts in February 2016 compared to 4,578 in February 2015. This is a just-under 52% increase.
Pending Home Sales:
There were 6,989 homes that went pending in February 2016 in MLSPIN compared to 4,731 in February 2015, which represents a just-under 48% increase.
This record breaking mild winter has had a tremendously positive impact on the real estate market. It is up in all three categories, homes listed, pending and sold. There is no doubt that March and April sales will be up as well. Weather is without a question the biggest factor but there are also other factors contributing to the stronger market such as eased lending guidelines which increase the amount of buyers in the market. Barring no unforeseen crisis in the economy this year should be the biggest year since 2005.