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Real Estate News: Number of New Listings Continues to Grow with Temperature as Spring Market Progresses

The Massachusetts Association of REALTORS (MAR) reported that single-family home sales in April were down close to six percent compared to the same time last year as a shortage of homes for sale impacted the number of closings. Demand for available single-family homes pushed prices up, while condominium sales and prices were also down in April. Looking more to Greater Boston specifically, new listings continue to increase while closed sales decrease. Median sale prices also continue to grow addingto the value of property in this competitive market.

Greater Bostons April Closed Sales:

Single-Family April 2015 April 2014 %Change
Sales 780 862 -9.5%
Median Price $470,000 $440,000 +6.8%
Pending Sales 1,700 1,475 +15.3%
Condominium April 2015 April 2014 %Change
Sales 663 867 -23.5%
Median Price $440,000 $397,000 +10.8%
Pending Sales 1,332 1,225 +8.7%

A shortage of homes for sale has forced closed sales down in April, said 2015 MAR President Corinne Fitzgerald. As the spring market progresses, were starting to see more homes come on the market and if this trend continues, we should see a very active summer.

The decrease in sales both in single-family homes and condominiums was not out of the ordinary specifically in the Greater Boston area. With the heavy snow fall and harsh temperatures this winter, buyers have not been able to actively attend open houses and view homes for sale. This ultimately has put a hold on sellers listing their home for sale. Undeniably, sales activity would be much higher if inventory was not at such a low.

Although condominium sales have decreased since April of 2014, on a month-to-month basis condo sales rose a tremendous 15% from 576 condos sold in March throughout the Greater Boston area. The Greater Boston Association of Realtors reported that the demand for condos remains strong especially among entry-level buyers looking to convert from renting to home ownership, overseas investors and suburban empty-nesters looking to downsize or relocate to Boston.

Greater Bostons Inventory and Days on Market:

Single-Family April 2015 April 2014 %Change
Inventory 2,964 3,590 -17.4%
Months of Supply 3.8 4.2 -8.8%
Days on Market 90 86 +4.9%
New Listings 2,531 2,242 +12.9%
Condominium April 2015 April 2014 %Change
Inventory 1,530 1,872 -18.3%
Months of Supply 2.3 2.2 +6.9%
Days on Market 57 58 -1.4%
New Listings 1,740 1,568 +11.0%

The amount of new listings coming onto the market cannot keep up with the buyer demand at this time. In the Greater Boston area new single family homes coming onto the market improved nearly 13% (or almost 300 units) from the same month a year ago, and an outstanding 63% (or almost 1,000 homes) from March.

In Greater Bostons condo market, sellers are profiting greatly. The typical condo owner was able to sell their unit either at or just below the full original asking price. The Greater Boston Association of Realtors reported that the percentage of original list price to selling price rose a full point to 100.4% in April, marking the 15th consecutive month the ratio of list price to sale price has reached or exceeded 98%.

The long winter may have delayed the start of spring selling season, but theres every indication the market will continue to heat up with the temperatures stated GBAR President David McCarthy. The local economy is adding jobs, mortgage rates remain near record lows, and property values are appreciating steadily once again. Im optimistic sales will rebound and that the next few months will be very busy, he added.

Ultimately not only in Boston, but across Massachusetts as a whole there is not enough inventory to keep up with the demand which continues to put upward pressure onprices. The number of new listings continues to grow with the temperature as the spring season progresses. If this trend continues, the late start to the spring season will make for an active summer season answering to those sellers who may be reluctant to list in fear that they will not find a home to buy.

About the Massachusetts Association of REALTORS: Organized in 1924, the Massachusetts Association of REALTORS is a professional trade organization with more than 21,000+ members. The term REALTOR is registered as the exclusive designation of members of the National Association of REALTORS who subscribe to a strict code of ethics and enjoy continuing education programs.

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