The Massachusetts real estate recovery continued in October.
Single-family home sales rose again in October, increasing nearly 19 percent from October 2012, The Warren Group, publisher of Banker & Tradesman, reported November 26, 2013.
An improving economy, pent-up home buyer demand and historically low mortgage interest rates are cited by real estate experts as some of the reasons for the hot Massachusetts real estate market in 2013. A lack of inventory certainly is playing a role in rising home prices.
The median price of a single-family home increased almost 10 percent in October to $313,050. October marked the highest median price for the month since October 2007, when the median price stood at $331,000. The median price for homes sold January through October was $324,900, up more than 12 percent from $289,000 during the same period in 2012.
Condominium sales statewide jumped 16 percent in October, increasing to 1,724 from 1,487 a year ago. Through October 2013, condo sales increased 5.8 percent to 17,089 from 16,152 during the first ten months of 2012.
The median condo price increased to $299,500, a 13 percent increase from $265,000 in October 2012. From October through January, the median price of condos increased to $295,000, up 7 percent from $267,500 during the same period last year.
The Massachusetts Association of Realtors (MAR) also reported October real estate sale and median price data. MAR and The Warren Group track real estate data differently. The Warren Group uses data from the various county Registries of Deeds and MAR uses data from the state's multiple listing services. MAR reported a 12.2 percent increase in home sales in October.
MAR also tracks real estate inventory and number of days on the market The inventory of single-family homes as of October 31, 2013 decreased 19.9 percent from October 2012 (20,716 listings in 2013 from 25,877 listings in 2012). October inventory translates into 4.8 months of supply in October 2013. October supply is down from 6.7 months in October 2012 and down from 5.4 months in September 2013. October marked the 20th straight month of single-family inventory decreases.
The number of new listings added to the market of single-family homes in October increased 10.9 percent over the same time last year (5,975 new listings in 2013 from 5,387 in 2012)
Condominium inventory declined 26.1 percent compared to October 2012 (5,582 listings in 2013 from 7,557 listings in 2012), There was 3.2 months of condo supply as of October 31, 2013, down from 5.0 months in October 2012 and down from 3.6 months in September 2013.
The number of new condo listings added to the market in October increased 17.7 percent from October 2012 (2,153 new listings in 2013 compared to 1,829 listings in 2012).
Detached single-family homes remained on the market an average of 92 days in October 2013 compared to an average of 114 days in October 2012. Condominiums remained on the market an average of 78 days, down from an average of 114 days in October 2012. It should be noted that the days on the market include days properties were contingent (pending) on the MLS, which means offers had been accepted but were pending competition of home inspections, signing of purchase and sale agreements, securing of financing or other contingencies.