What is happening in Massachusetts Real Estate?
We saw an increase in activity through March and April 2010, and, like the rest of the country, we wondered how much of this had to do with the Homebuyers’ tax credit. The first deadline for qualifying for the credit ended on April 30.
While we did see a frantic surge of activity toward the end of April, in our office we have not seen that much of a drop-off after the deadline. After an initial breather, we are finding that there are buyers who had been prequalified in hopes of making a quick offer, but just couldn’t find their dream home. Their Realtors are checking the MLS every morning for new listings in hopes of finding the right house for them.
We are still waiting for May numbers, but it would appear that the tax credit did what it was supposed to. According to the Massachusetts Association of Realtors:
There were 3,520 detached single-family homes sold this April, a 43.8 percent increase from the 2,448 homes sold the same time last year. On a month-to-month basis, home sales were up 21.8 percent from 2,890 homes sold this past March. This is the second largest year-over-year increase since MAR has been tracking monthly data.
The median selling price for single-family homes in April was $295,000 an increase of 7.3 percent compared to $275,000 in April 2009. This is the sixth straight month of year-over-year gains. On a month-to-month basis, the April median selling price was up 5.4 percent from $280,000 in March 2010.
The April condominium market was up 63.9 percent compared to the same time last year (from 956 units sold in 2009 to 1,567 units sold in 2010). On a month-to-month basis, condominium sales were up 20.9 percent compared to the 1,296 units sold this past March. This is also the second largest year-over-year increase for condominiums since MAR has been tracking the data.
Condominium median selling prices in April were up 6.8 percent from $236,000 in 2009 to $252,000 in April 2010. This is the fifth straight month of year-over-year gains. On a month-to-month basis, the median selling price of a condominium was down 1.6 percent from a March 2010 median of $256,000.
The tax credit did stimulate home sales, and a mortgage rate recently below 5% for a 30 year fixed rate is contributing to buyer activity by making more homes affordable. The difference between a $250,000 home in Leominster at 5.1% and at 4.7% is huge.
For example, our 14 Dogwood Rd. in Leominster listed at $239,500 would carry a mortgage of $1040.29 per month (principle and interest) at 5.1% (according to the MLS mortgage calculator, with 20% down payment). This same property would cost $993.71 per month at 4.7% (principle and interest). That’s a big difference.
Buying or selling your home, or just interested in general real estate market conditions? Get to know our agents on our facebook page, search home listings from the button on the right, or call the office for no-obligation information at 978-537-6401.
