July 2015 Housing Report
July 2015 Housing Report
July 2015 was the single biggest month for Home Sales since August 2005- a historic month!
Massachusetts Home Sales up over 24%!
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 July 2015 compared to July 2014.
Overall home sales in Massachusetts were up over 24% compared to July 2014. There were a total of 10,699 homes sold in July 2015 compared to 8,588 in 2014. This is the second month in a row of increased home sales. June home sales were up 12%. The average price for all homes including Single Family, Condo’s and Multi’s increased 5% since July of 2014 to $387,964 compared to $368,594 in July of 2014 and $353,256 in July 2013. This was the single biggest month for home sales in Massachusetts since August 2005 when there were 12,586 homes sold.
Southern New Hampshire Home Sales up 27%!
After many down months June was a breakout month for home sales in Southern New Hampshire (Cheshire, Rockingham and Hillsborough Counties). However July topped June with a total of 1,590 home sales compared to 1,252 sales in July of 2014. Prices increased substantially compared to July 2014 with an average sale price for all homes including Single Family, Condo’s and Multi’s of $284,195 compared to $233,559 in 2014. This represents a 22% increase in prices. The largest increase was seen among multifamily homes with sales up 94% and prices up 73%. There were 66 multifamily home sales with an average sale price of $353,330 compared to 34 sales in July of 2014, with an average of $204,312. This large increase can be mostly attributed to rents continuing to increase which consequently drives up the value of multifamily homes.
Why Such an Increase?
This dramatic increase in home sales is wonderful to see and great for the overall market! There are many reasons for this big jump in home sales. The first reason is the harsh winter delayed everyone from listing their homes so actual sales got delayed which created a tremendous amount of pent up demand that finally worked its way through in July. June is typically the biggest month of the year for home sales but it got delayed by a month this year. However the harsh winter and pent up demand was not the only reason. As explained in our blog on 9 Reasons 2015 will be the biggest year for home sales since 2005 lending guidelines have finally loosened up which enables more people to buy homes, interest rates are lower than last year, and the economy continues to improve. Anthony explained all of this on WHDH Urban Update back in March. Click here to watch that segment.
Homes Listed for Sale
There were 10,328 homes listed for sale in Massachusetts MLSPIN in July 2015 compared to 9,596 in July 2014. This is an 8% increase and is welcomed news for buyers as they now have more homes to choose from. However inventory is not as high as it was one year ago which is actually a good thing. Today there are 25,213 homes for sale compared to 26,845 homes for sale last year at this time. Last summer inventory got much higher and that over supply caused the market to slow down and it remained slow into the fall.
Pending Home Sales:
The best indicator of what is to come for home sales. There were 9,574 homes that went pending in July 2015 in MLSPIN compared to 8,270 in July 2014 which is roughly a 15% increase. This makes it a sure bet that home sales will be up in August too!
Rest of The year?
With pending sales being up as much as they are and overall demand from buyers remaining strong it looks like our prediction of 2015 being a the biggest year since 2005 will be accurate.
Data provided by Warren Group & MLS PIN and compared to prior year.