Massachusetts Home Buyer Guide

While the media and the real estate industry earlier this week trumpeted the fact that single-family home sales reached the highest level since 2006 in May 2013 the more important number for Massachusetts home buyers is the jump in the median price of homes compared to May 2012.

After reports last year about how affordable homes were historically speaking, the Massachusetts real estate market heated up. Now that home prices have increased and mortgage interest rates have begun to rise recently home buyers, especially first-time home buyers, are feeling squeezed in a market still lacking sufficient inventory.  

The Warren Group, publisher of Banker & Tradesman, reported June 25, 2013 a nearly 12 percent increase in the price of a single-family home in May. The Massachusetts Association of Realtors (MAR) reported June 25, 2013 an 8.7 percent home price increase in May compared to May 2012. The Warren Group numbers indicate double-digit median home price increases for four straight months. 

Massachusetts home sales increased 8.5 percent in May, rising to the largest number of transactions for the month of May since 2006, according MAR reported. 

The Warren Group reported the following Massachusetts real estate data: 

• A total of 4,820 single-family homes sold in May 2013, up from 4,540 the same month last year.

• A total of 16,068 single-family homes have sold so far from January through May, down 0.19 percent from 16,098 during the same period last year. Lack of inventory is blamed for the flat home sales number year to date.

• The median price for single-family homes sold in Massachusetts in May increased to $324,500 from $290,000 in May 2012.

• Through May, the median sale price of a single-family home in Massachusetts is $300,000, a 11 percent higher than the $270,000 median price recorded during the first five months in 2012.

• The median sale price of a Massachusetts condominium was $295,000 in May, a 2.2 percent increase from $288,675 in May 2012 (MAR data showed a 1.7 percent decrease in MA condo prices).

• The median condo price through May rose 1.6 percent to $270,000 from $265,750 during the same period last year.

• Condo sales increased more than 5 percent to 2,015 from 1,909 in May 2012.

• A total of 6,561 condo sale transactions were recorded in the first five months of 2013, a 3.4 percent increase from 6,348 during the same period last year.

Because of the recent change on how the MLS Property Information Network, Inc., the largest MLS in Massachusetts, classifies under agreement status (“UAG”), year-over-year comparisons of inventory, months of supply and days on market data for homes between May 2012 and May 2013 are not possible. MAR stated in a press release that is working with its analytics vendor and the MLS to determine and implement a solution to update historical data to provide for accurate year-over-year comparisons.