Massachusetts Home Buyer Guide

Massachusetts single-family home sales increased 5 percent in January 2014, reaching the highest number of sales recorded for any January since 2007, The Warren Group, publisher of Banker & Tradesman, reported February 25, 2014.

The jump in single-family home sales came after two months of modest decreases in sales that had many in the real estate industry wondering whether the Bay State housing market would slow down in 2014.

January single-family home sales increased to 2,728 from 2,599 in January 2013. January 2014 marked the highest number of sales reported in January since 2007 when 2,953 houses were sold.

The median sale price of a single-family home in Massachusetts in January increased 12.5 percent to $315,000 from $280,000 last year. January marked the seventh time in the past 12 months that median prices have gone up by double digits, and it saw the highest median price for homes in any January since 2008.

The continued lack of inventory in many communities is behind the rising home prices. Since home buyers cleared out excess inventory in 2012, not enough homeowners have listed their homes for sale to keep up with demand.

The Massachusetts Association of Realtors (MAR) reported February 25, 2014 that the inventory of single-family homes as of January 31, 2014 decreased 20.4 percent from January 2013 (15,246 listings in 2014 from 19,142 listings in 2013). The number of homes on the market translates into 3.6 months of supply in January 2014. The amount of supply is down from 4.9 months of supply in January 2013 and down from 3.9 months of supply in December 2013. January 2014 was the 23rd straight month of inventory decreases. The number of new listings added to the market of single-family homes in January decreased 11.1 percent over the same time last year (4,167 new listings in January 2014 from 4,685 in January 2013).

Condo sales in January increased to 1,144 from 981 in 2013, a 16.6 percent increase, The Warren Group reported. January 2014 was the first January since 2008 that condo sales broke the 1,000 mark.

The median condo price in Massachusetts jumped 24 percent to $300,000, the highest January median price for condos since The Warren Group began tracking median condo price data in 1987. In January 2013, the median price for a condo was $242,000.

MAR also reported that the inventory of condominiums on the market in January declined 27 percent compared to January 2013 (4,232 listings in 2014 from 5,795 listings in 2013). The number of condos on the market translates into 2.4 months of supply, down from 3.7 months in January 2013 and down from 2.6 months in December. The number of new listings added to the condominium market in January decreased 11.4 percent from January 2013 (1,700 new listings in 2014 from 1,919 listings in 2013).

Massachusetts home buyers only need to look back less than two years to see how much real estate inventory has declined. As recently as April 2012, MAR reported 9.7 months of single-family home supply and 7.7 months of condominium supply.