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May 2017 Housing Report

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 May 2017 compared to May 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 May Home Sales Up 3.93%

Massachusetts home sales increased almost 4% in May 2017, which contrasted April 2017’s 3% decrease.

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, in April we were down and here we are, back up in May.

Home sales increased across the board for single families, condos, and multi-families this month compared to May 2016 with condos increasing the most at over 9% (from 2,146 sold in May 2016 to 2340 in 2017).  Single families rose 1.87%, from 5,297 to 5,396 and multi-families went up a little more at 3.9%, from 666 in 2016 to 692 this year.

The average price increased in every category, with a total increase of 5.47% – rising from $392,528 in May 2016 to $413,988 in May 2017.  Single families increased the most in price, by 7.59% from $420,302 to $452,201.  Condos and multi-families rose 5.91% and .75% respectively.

 

Homes Listed for Sale:

There were 12,664 homes listed for sale in Massachusetts in May 2017 compared to 11,809 in May 2016 which represents a 7.24% increase.  This is a very positive change from last month, which had a 9.3% decrease in homes listed.

From June 1st to the 15th, however, the number of homes listed is down 3.78% from last year which indicated the market is still balancing out and transitioning into a buyer’s market, slightly later than it did last year.

Pending Home Sales:

There were 11,466 homes that went pending in May 2017 in MLSPIN compared to 11,404 in May 2016, which represents a very slight increase of just over half a percent.  It is the first increase we’ve seen in this category in four months; last month we saw a 13% decrease, so although it’s up by a small percentage from last year, the change is relatively significant in the last 30 days.

As of June 15th, pending sales were also up slightly, by .34% from last year at the same time, which shows consistency in the market, but is a decrease from what we saw in the first half of May 2017, which was up 8.67%.  Again, this shows that buyers are now taking their time as the market has more inventory for them to consider.

Southern New Hampshire Home Sales Up 1.43%

The number of properties sold in Southern New Hampshire rose slightly, by 1.43%. Multi-families increased by the highest percentage, 39%, but only from 41 in May 2016 to 57 in May 2017.  Condos rose 8.6%, from 314 to 341 but single-family sales decreased by 2.77% in May, from 903 to 878.

Average price for homes in New Hampshire increased overall by 5.67% with condos increasing the most by 17.37% from $211,246 to $247,931 in May 2017.  Single-family prices saw a 5.56% increase, rising to $305,545 from $289,455 while multi-family prices decreased by almost 10% (from $314,271 to $284,118).

What’s Ahead?

The increase in homes listed in Massachusetts directly correlates to the market swaying more toward the direction of a buyers’ market over the last month.  When there’s more inventory as there is now, buyers have more to choose from, more time to look, and more leverage when making offers.  Although do not be fooled into thinking that it is suddenly a buyers’ market just because the scales are sliding.  We are going to see it become much more of a buyers market as the year goes on.  As predicted in April’s housing report, May did see an increase in sales, and though prices increased, the average price for homes didn’t shift significantly.

Sellers should remember that their homes may take a bit longer to sell as the market follows trend into the buyer’s favor.  This is to be expected during this time of year.  Click here to watch Anthony’s Market Update video which explains further.  We are also now at the time of year that price adjustments are more popular due to the shift in the market. Click here to read our blog to learn more about price adjustments.  We expect June sales to be up slightly and July sales to be up much more.

Data provided by Warren Group & MLS PIN and compared to prior year.