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.  

NEWS ALERT: The Massachusetts Association of Realtors pending sales numbers were not accurate. The post is below. We will update this post or write a new post as soon as the numbers are corrected.  Please see what Banker & Tradesman wrote.

As expected, the median price for single-family homes in Massachusetts increased in April; however, the big story for home buyers is the increase in new homes for sale across the state. 

New single-family home listings added to the market in April 2013 increased 12.7 percent compared to the same time last year (9,350 new listings in April 2013 cpmpared to 8,294 listings in April 2012). There was a 44 percent increase in new homes for sale from the 6,468 listings added to the market in March 2013. April saw the biggest increase in new home listings since April 2010, the Massachusetts Association of Realtors reported May 29, 2013. 

Eighteen months ago Massachusetts home buyers did not need be too concerned with whether a home for sale they visited would be available to make an offer on the next day or even the next week. How times have changed. 

A new home listing in Holliston, MA that a Buyers Brokers Only, LLC client wanted to see yesterday went under agreement in about three hours on Thursday. Not three days, but it went under agreement in about three hours. Stories like the one above have frustrated home buyers in Massachusetts over the past few months.

NECN's This Week in Business segment on April 7, 2013 took a look at the Spring real estate market in the Greater Boston Area. This 10:42-minute video is a discussion of the real estate market with Tim Warren of The Warren Group, publisher of Banker & Tradesman, and Kimberly Allard-Moccia, President of the Massachusetts Association of Realtors.  

The lack of real estate inventory had Massachusetts home buyers paying more for homes in March 2013 compared to March 2012.

The median price for single-family homes sold in March rose more than 8 percent to $285,000 from $263,000 a year earlier, The Warren Group, publisher of Banker & Tradesman, reported April 24, 2013. March marked the sixth consecutive month that monthly home prices have increased year-over-year. The first quarter median selling price was $282,500, a 10.6 percent increase from $255,500 in the first quarter of 2012.

After sliding in February due to several snow storms and a lack of inventory, Massachusetts pending home sales increased in March compared to March 2012, the Boston Business Journal reported it April 9, 2013. 

The Massachusetts Association of Realtors provided the pending home sales data. 

After several years of declining prices, Massachusetts home buyers must navigate a real estate market with low inventory and increasing values in 2013. 

The median price for a single-family home in Massachusetts rose more than 12 percent last month to $275,000 from $245,500 in February 2012, The Warren Group, publisher of Banker & Tradesman, reported March 26, 2013. The year-to-date median home price is also up about 12 percent, rising to $279,000 from $250,750 last year.

Although pending home sales in Massachusetts were positive for the 22nd straight month compared to the previous year, the strong pending single-family home sales numbers seen in previous months were absent in February 2013, the Massachusetts Association of Realtors reported March 12, 2013. 

Real estate professionals blame two stormy weekends in February and a lack of inventory for the slow growth in pending home sales, which are a leading indicator of actual home sales in Massachusetts for the following 30 to 60 days. Massachusetts home buyers, especially first-time home buyers, are well aware of the current lack of inventory. 

Massachusetts home buyers calculating the total cost of homeownership may need to remove the potential for tax breaks to repair or replace a septic system and/or for removal of lead paint. 

As part of a package of tax increases and the elimination of a variety of tax breaks, Massachusetts Governor, Deval Patrick, hopes to raise $1.9 billion annually in revenue. Two of his proposals are to eliminate the lead paint tax credit and the septic system repair / replacement credit. 

March has arrived, and we'll move the clocks forward an hour next week. It sounds like warmer temperatures and longer days are around the corner, but Massachusetts home buyers are wondering whether the spring real estate market will ever arrive.

The number of Massachusetts homes for sale has continued to decline over the past year. As of January 31, 2013, the inventory of single-family homes in the Bay State decreased 27.3 percent compared to January 2012, the Massachusetts Association of Realtors reported February 26, 2013.

Despite the lack of inventory, Massachusetts home buyers continue their quest for homes. 

Both single-family home sales and median price increased in January compared to January 2012, the Massachusetts Association of Realtors reported February 26, 2013.

Massachusetts real estate prices have increased four straight months, and single-family home sales have shown positive results in 19 straight months.