February Real Estate Update for the Pioneer Valley Region

Pioneer Valley

Sales up 3.7%

Feb 2014 - Number of units closed - 215

Feb 2015 - Number of units closed - 223

Feb 2014 - Average Sales Price - 190,972

Feb 2015 - Average Sales Price - 211,661

Franklin County

Sales down 8%

Feb 2014 - Number of units closed - 25

Feb 2015 - Number of units closed - 23

Feb 2014 - Average Sales Price - 151,270

Feb 2015 - Average Sales Price - 187,474

Hampshire County

Sales up 23%

Feb 2014 - Number of units closed - 48

Feb 2015 - Number of units closed - 59

Feb 2014 - Average Sales Price - 241,516

Feb 2015 - Average Sales Price - 277,700

Key Points - Pioneer Valley Single Family Homes

• Sales - Up 3.7 percent from 215 in February 2014 to 223 in February 2015.

• Median Price - Up 11.2 percent from $169,900 in February 2014 to $189,000 in February 2015.

• Inventory is down 5.8 percent from 1,922 single family listings at the end of February 2014 to 1,811 single family listings at the end of February 2015.

• Supply - At the end of February 2014 there 8.9 months of supply at the current rate of sale.  At the end of February 2015 there were 8.1 months of supply at the current rate of sale.

• Days on Market - The average days on market is up 6.5 percent from 138 days in February 2014 to 147  in February 2015.

• A Six-Year View - The median price is up 9 percent from $173,250 in February 2010 to $189,000 in February 2015. 

• Mortgage Rates - 30 year fixed rate mortgage averaged 3.80 percent with an average of 0.6 points for the week ending February 26, 2015.  Last year at this time the 30 year FRM averaged 4.37 percent with an average 0.7 points. (Source: FreddieMac.com)

This information is provide by the Realtor Association of Pioneer Valley

Autumn and Winter Slowdown - Real Estate Update

Autumn and Winter Slowdown

Posted in Economic Updates, by Lawrence Yun, PhD., Chief Economist and Senior Vice 

• The economy is growing, jobs are being created, and interest rates are still unimaginably low. Naturally, home sales are expected to rise. But the typical business activity of a REALTOR® will be falling as the autumn approaches.
• Every year as the school year begins homes sales invariably decline in September from August. In the past 15 years, the average decline has been 16.4 percent. In October, home sales generally hold on. Then in November, home sales dip again, by 8 percent generally. December figures tend to match the low November figures. Because of the dark, cold weather spanning most of the country, January is not pretty for home sales, with an average plunge of 27 percent. Sunlight then flickers in February with a small rise. Much stronger activity then arises in March and April and into the summer months.
• Despite the weaker business opportunities in the upcoming autumn and winter months, media headlines on home sales are likely to show an upturn and possible strengthening conditions based on NAR home sales releases. What gives?
• An example of jobs in a beach town provides an easy comprehension. In Myrtle Beach, there tend to be about 15,000 more jobs in the summer months compared to the rest of the year. If during one summer the jobs grew by say only 6,000 then one would not say Myrtle Beach is doing well. Rather one will say there is a problem.
• Most headline economic data, therefore, including GDP and unemployment rate, are stated as seasonally adjusted figures. The reason for the seasonal adjustments in the data is to better gauge an underlying economic trend of slight weakening or slight strengthening. For example, if a normal decline in raw home sales count in September is 16.4 percent, but this year September’s decline was say, 8 percent, then the housing market is somehow doing better. The seasonally adjusted home sales figure will then say as such. (Further the figure is multiplied by 12-months to get an annualized rate.) Again, all economic data essentially undergoes this process. And this seasonally adjusted data will get reported in the media and is what consumers will hear.
• What this means is that your clients need to be reminded of these seasonal patterns. The media just may be reporting improving home sales throughout the upcoming autumn and winter. This does not mean a home-seller should be raising the listing price. Invariably, there are fewer home-buyers in autumn and winter.

Lawrence Yun, PhD., Chief Economist and Senior Vice President

Lawrence Yun is Chief Economist and Senior Vice President of Research at NAR. He directs research activity for the association and regularly provides commentary on real estate market trends for its 1 million REALTOR® members.

Mass Assoc of Realtors Market Update January, 2013

The January report is provided by the 

Massachusetts Association of REALTORS:

The Massachusetts real estate market is off to a strong start in 2013 as January median home prices were up for the 4th straight month and sales were up for the 19th straight month compared to the same month the year before. Condo median prices were flat compared to 2012 while sales continued their upward trend in January.  2012 was a very active year with the most homes sold since 2005. Median prices were essentially flat from 2011.

Highlights from the release:

§  Single-family home sales were up 13.7% compared to last year (19th straight month)

§  Single-family median prices were UP 5.% ($282,500) (4th straight month)

§  Most homes sold in a January since 2007

§  Single-family inventory had biggest year-over-year drop in January (-27.3%) (down for 10th straight month)

§  Condo sales were up 15.7% compared to the same time last year

§  The median price for a condo was flat ($250,000) compared to last year

Click here to listen to the podcast and preview the MARReport

Economists bullish on housing recovery!

Home prices will see steady increases through 2016 starting this year, according to a quarterly survey of more than 100 economists, real estate experts and investment strategists.

The survey, conducted by research and consulting firm Pulsenomics LLC on behalf of real estate search and valuation portal Zillow between Aug. 30-Sept. 14, 2012, asked 113 participants to project the path of the S&P/Case-Shiller U.S. National Home Price Index over the next five years.

The latest S&P/Case-Shiller Home Price Indices, which include data through June, show national home prices up 1.2 percent from a year ago during the second quarter. All of the markets in the S&P/Case-Shiller 20-city composite posted annual gains for the second month in a row, and all but two -- Charlotte and Dallas -- posted better annual returns in June compared to May.

This quarter's survey results show optimism has increased among the participants, who in the second quarter had predicted a 0.4 percent dip in home prices this year, followed by modest increases starting in 2013 and through 2016.

Economists now forecast home prices will rise 2.3 percent in 2012 from fourth-quarter 2011, and see further cumulative rises of 4.7 percent in 2013, 8 percent in 2014, 11.4 percent in 2015, and 15.2 percent in 2016.

Click on the link below to continue reading this informative article.

Economists bullish on housing recovery | Inman News

More good news - March Pending Sales Up!

REAL ESTATE NEWS RELEASE - MARCH MARKET UPDATE

Pending home sales increased in March and are well above a year ago, another signal the housing market is recovering, according to The National Association of Realtors.  The Pending Home Sales index,  a forward-looking indicator based on contract signings, rose 4.1 percent to 101.4 in March from an upwardly revised 97.4 in February and is 12.8 percent above March 2011 when it was 89.9.  The data reflects contracts but not closings.  The index is now at the highest level since April 2010 when it reached 111.3.

This is a positive sign as we move forward in the Spring market.  For more information and comments from the National Association of REALTORS chief economist check out the NEWS RELEASE.