Both single-family and condominium pending home sales in Massachusetts increased in November compared to November 2011, marking the 19th straight month that pending home sales increased, the Massachusetts Association of Realtors (MAR) reported December 11, 2012.
Pending home sales, also referred to as homes "under agreement," are a leading indicator of expected home sales for the following two to three months; however, the actual number will likely be somewhat lower due to real estate transactions not going to closing because of a variety of reasons. In addition, not all properties put under agreement in November will close in December.
The number of single-family homes put under agreement in November was up 28.2 percent compared to the same time last year (3,016 homes in 2011 compared to 3,866 homes in 2012). November also marked the 11th straight month of year-over-year increases that were more than 25 percent. On a month-to-month basis, single-family homes put under agreement went down 11 percent compared to 4,355 homes put under agreement in October.
The number of condos put under agreement in November was up 28.5 percent compared to November 2011 (1,119 units in 2011 to 1,438 units in 2012), marking the tenth straight month of year-over-year increases of 25 percent or more. On a month-to-month basis, condos put under agreement went down 14 percent from 1,672 units in October.
A pending sale or a sale “under agreement” is when the buyer and seller agree on the terms of the sale of a home and have a signed purchase and sale agreement, but have yet to close and be recorded as such. MAR compiles this statewide information from local Multiple Listing Services (MLS) each month.