July 2016 Housing Report
July 2016 Housing Report Sales Down & Prices Up!
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. The comparison is for the month of July in 2016 compared to July of 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 Down 13%
For the first time in an impressive run of thirteen months, the number of total Massachusetts home sales is down. We will start with the exact numbers and then explain why this has occurred.
Home sales were down across all categories, falling 12% in single families, 16% in condos, and 6% in multi-families – a 13% decrease overall. There were 10,699 homes sold with an average sale price of $387,964 in July of 2015, and 9,337 homes with an average sale price of $406,916 in July of 2016.
The category that saw the largest increase in average sale price in July was single-family homes, which rose 7% from 2015. The average sale price for single family homes rose from $425,857 in July 2015 to $453,756 in July 2016.
Condos, as mentioned above, saw the biggest decrease in sales – falling from 2,794 condos sold in 2015 to 2,357 in 2016. Condos also saw the smallest increase in average price (which was positive across all categories) rising 1% from $314,657 in July 2015 to $317,831 in July 2016. Multi-families also saw a decrease in sales by 6% and a just under a 5% increase in price.
Southern New Hampshire Home Sales Down 16%
Total sales in Southern New Hampshire were down 16% over July of 2015, with the percentage decrease in the double digits across all categories. Multi-families had the biggest decrease – falling 29% from 66 in July 2015 to 47 in July 2015. Single families saw the smallest decrease at just under 12%, falling from 1,136 to 1,005.
Unlike Massachusetts, Southern New Hampshire did see decreases in average sale prices. Total average price across all categories fell a little over 2%. The greatest decrease was in condos, which fell from $228,421 to $213,466 – a change of -7%. The only category to have an increase in price was single family homes, though the increase was less than 1%.
Homes Listed for Sale:
Homes listed for sale across Massachusetts fell 13%. There were 9,017 homes listed for sale in Massachusetts in July 2016 compared to 10,325 in July 2015.
Pending Home Sales:
There were 8,848 homes that went pending in July 2016 in MLSPIN compared to 9,525 in July 2015, which represents a 7% decrease year-to-year.
Why are home sales down?
After a strong 13 months of growth in homes sales, are home sales suddenly falling? The reason for this is due to the excessive snow during the winter of 2015, which drove sales down in February, March, April, and May, and pushed the typical spring peak out through the entire summer of 2015. Therefore, Summer 2015 sales were artificially inflated. This is the same reason that homes listed was down as well. Many home owners delayed listing into the summer last year due to the snow.
*Data provided by Warren Group & MLS PIN and compared to prior year.