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Real Estate News: Greater Boston Area Sees Record Setting Sale Prices in October

Homebuyers stayed active this fall as closed home sales went up in October close to eight percent compared to October 2014 in Massachusetts according to the Massachusetts Association of REALTORS (MAR). This is the fifth straight month of year-over-year increases in single-family home sales.

Buyer momentum continued to drive the increase in closed sales this October, said 2015 MAR President Corinne Fitzgerald. Buyers are snapping up the available inventory of all homes very quickly and this is pushing prices higher. Like everyone else involved in real estate, were waiting to see what the Fed does with interest rates in December as a predicted increase could impact prices.

More specifically in Greater Boston, the housing market experienced an overall increase in residential property sales during October, as sales for detached single-family homes rose to a new record level for the month. However, condominium sales slowed for the first time in four months as prices rose sharply and inventory lagged, according to data from the Greater Boston Association of REALTORS (GBAR).

Following a month of record single-family home sales and a significant rise in pending sales in the single-family home and condo markets, we and many of our agents feel optimistic about the market going forward, said GBAR President David McCarthy. Were seeing steady price appreciation and many buyers feel that if they dont act now they could be subject to that increase in the future, and right now no one is predicting prices to flatten within our market in the coming year.

Greater Boston Single-Family Market Overview

October 2014 October 2015 +/-
Closed Sales 1,048 1,184 +13.0%
Median Sales Price $435,000 $440,000 +1.1%
Days on Market Until Sale 71 70 -1.4%
New Listings 1,546 1,586 +2.6%

In the single-family home market, the median selling price improved 1.1 percent over the past 12 months, from a median of $435,000 in October 2014 to a new record high price of $440,000 this October. In the single-family home market, pending sales increased 20.5 percent on last Octobers rate, with 1,410 pending sales last month up from 1,170 pending sales a year ago.

Greater Boston Condominium Market Overview

October 2014 October 2015 +/-
Closed Sales 865 802 -7.3%
Median Sales Price $394,000 $454,950 +15.5%
Days on Market Until Sale 53 52 -1.9%
New Listings 1,080 1,137 +5.3%

The condominium median selling price had a sharp price increase of 15.5 percent in the past year, from a median of $394,000 last year to a record high median for October of $454,950. Pending condominium sales last month also increased from 822 pending sales in October 2014 to 977 pending sales this year, resulting in an 18.8 percent gain.

We live in a region with well-paying jobs and excellent schools and that combination leads to a strong housing market, even with a limited housing supply, as we saw last month, said McCarthy.

Demand for both condominiums and single family homes is healthy, although lack of inventory is putting upward pressure on prices. Due to this, sellers are profiting greatly especially in the condominium market. October marks the seventh consecutive month the ratio of list price to sale price has stood at or above 99 percent meaning the typical condo owner was able to sell their unit for nearly full asking price or above the original list price meaning that now is a great time to take advantage of the current state of the market.

About the Greater Boston Association of Realtors:The Greater Boston Association of REALTORS (GBAR) represents over 6,500 real estate professionals throughout the Greater Boston and Eastern Massachusetts area and is one of the local boards of the National Association of REALTORS the largest trade association in America. GBAR provides professional development courses, standard forms, legal reports and updates, brokerage counseling, legislative and regulatory representation, ethics, mediation and arbitration services, as well as recognition awards.

Sources: Greater Boston Association of Realtors, Massachusetts Association of Realtors

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