Strength in buyer demand and a well performing economy have led to an increase in sales and prices of single family homes and condominiums in May for Greater Boston according to a report from the Greater Boston Association of Realtors (GBAR).
May was the 12th consecutive month for increased sales of single family homes with a 17% rise from May of 2015. At 1,240 homes sold, this marks the highest number of single family home sales since May of 2004 when 1,269 homes were sold.
Condominium sales were also on the rise with a 14.6% increase from last month being the highest since 2013 when 1,129 condos were sold in May.
“We have noticed a jump in the number of property owners taking advantage of the equity in their homes to re-enter the market and either downsize or trade up to the middle and upper home sales price. Together with high consumer confidence and a healthy job market in Greater Boston, it’s made for an extremely busy spring selling season, especially in May,” said GBAR President Andrew Sarno. “Although inventory levels are not what we’d like them to be, buyer optimism remains high and with mortgages rates as low as they are and prices appreciating at very modest levels in both markets, we are looking at a busy summer throughout the region.”
One of the larger statistical differences from May of last year to last month was the decline in inventory for available homes for sale in both markets. Single families dropped 17.4% down to 2,918 last month with condos falling at a greater rate at a 27.1% decrease.
“With the continued inventory shortage in our region it’s no surprise that many homes are being sold at or above their original listing price as buyers are eager to close on a home before any additional price increase” said Sarno. “We often see bidding wars drive up costs and price out buyers when inventory is lacking; however with a modest rise in sales cost and an increase in pending sales this month buyer activity remains high despite these challenges.”
On a positive note, pending home sales increased in both markets last month. Single family pendings rose 6.1% to 1,868 last month with condos bumping up 3% to 1,337.
For the original article visit Bethdickerson.com
Beth Dickerson is Senior Global Real Estate Advisor for Gibson Sotheby’s International Realty, Boston, Mass.