November 2016 Housing Report – Home Sales up 26% in MA and 9% in NH
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 November 2016 compared to November 2015. It also looks at other metrics for Massachusetts like Homes Listed and Pending, as they are often the best predictors of future trends in the market.
Massachusetts Home Sales Up 26%
Massachusetts had a strong month across the board for sales in November. Total home sales were up over 26%, rising from 6,142 homes sold in November 2015 to 7,757 homes in November 2016.
The category that saw the smallest increase in number of homes sold – condos – was still only two points below the state average, with a growth of 24% (from 1,583 to 1,966). Multi-families saw the largest amount of growth, rising from 548 homes sold in November 2015 to 730 in November 2016.
The change in average price in Massachusetts was far more moderate than the change in sales for November, only rising from $391,688 to $399,216, an increase of just under 2%. Average price for both single family homes and condos rose close to 4%, but fell 3% for multi-families (from $447,912 to $432,880).
Southern New Hampshire Home Sales Up 9%
Southern New Hampshire, like Massachusetts, had a steady, all-positive month in number of sales growth. They saw a 9% increase in number of sales, from 950 in November 2015 to 1,035 in November 2016. Single families saw the biggest increase as well as the biggest change: they went from 658 sales in November of 2015 to 731 in November of 2016 – an increase of 11%. Multi-families saw the smallest growth, though it’s a small category already; the 2% of growth meant that just one more home was sold this November than last (going from 48 to 49).
Though change in sales was positive across all categories, change in average sale price was not. Overall, average price fell from $288,184 to $273,074, a change of 5% and the categories varied widely. The only group to show positive change was multi-family homes, in which the prices grew 3%: from $290,051 to $299,498. Condos fell the most, from $265,614 to $236,842, a drop of almost 11%.
Homes Listed for Sale:
Homes listed for sale across Massachusetts were virtually unchanged in November. There were 6,005 homes listed for sale in Massachusetts in November 2016 compared to 6,076 in November 2015.
Pending Home Sales:
There were 7,004 homes that went pending in November 2016 in MLSPIN compared to 6,762 in November 2015, which represents an increase of 3.5%. This was very good news considering the spike in mortgage rates immediately following the election. Rapid increases in rates typically cause a slowdown in buyer activity but it didn’t in November. Pending sales being up in November contributed to housing inventory being down even more in December as we had less inventory than any year since 2000.
November marked another strong month for home sales as it was the 9th month in 2016 with an increase in home sales as reported in our monthly housing reports. In addition, by November 30th Massachusetts reached a total of just over 85,000 home sales. This means that once December is over and the year is completed we will beat 2006 which had 88,000 home sales. This will mean that 2016 will be the biggest year for home sales since 2005 as we predicted in our 2015 Housing Report. The market in December has remained active and all signs point to a very busy winter. The only wildcard is Mortgage interest rates which have increased a full point since the election. So far, we have not seen a slowdown from it but that could happen as Anthony explained in his market update video on December 22nd.
*Data provided by Warren Group & MLS PIN and compared to prior year.