Pending home sales have gone up 18 straight months
WALTHAM, Mass. - November 12, 2012 – The Massachusetts Association of REALTORS® (MAR) reported today that pending home sales in October experienced their second biggest year-over-year increase since MAR began tracking this data. Condominium pending sales have also gone up significantly compared to the year before. Pending sales figures (also called homes under agreement) are a leading indicator of actual housing sales in Massachusetts for the following 2-3 months.
“Although there was the potential for buyers to delay their purchase of a home until after the election, pending home sales had its largest year-over-year increase since April 2010, which was the final month to qualify for the home buyer tax credit,” said 2012 MAR President Trisha McCarthy, broker at Keller Williams Realty in Newburyport. “This increase heightens the probability that the market will remain strong through the remainder of the year and into 2013.”
The number of single-family homes put under agreement in October was up 35.9 percent compared to the same time last year (*3,204 homes in 2011 to 4,355 homes in 2012). This is the 18th straight month of year-over-year increases and the second largest year-over-year increase since the Association started tracking pending sales data in June 2007. This is the tenth straight month of double-digit year-over-year increases. On a month-to-month basis, single-family homes put under agreement went up 6.45 percent compared to 4,091 homes put under agreement in September.
The number of condos put under agreement in October was up 43.5 percent compared to October 2011 (*1,166 units in 2011 to 1,673 units in 2012). This is the 11th straight month of double-digit year-over-year increases. On a month-to-month basis, condos put under agreement went up 6.56 percent from 1,570 units in September.
About Pending Sales:
The tracking of signed purchase and sales agreements (also called “pending sales”) provide reliable information about where the real estate market is heading in coming months.
A pending sale or a sale “under agreement” is when the buyer and seller agree on the terms of the sale of a home and have a signed purchase and sale agreement, but have yet to close and be recorded as such. MAR is the only organization which compiles this statewide information from Multiple Listing Services each month.
About the Massachusetts Association of REALTORS®:
Organized in 1924, the Massachusetts Association of REALTORS® is a professional trade organization with more than 18,000 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.
*Please note: As of January 2012, all 2011 pending home sales data has been updated to reflect new collection methods from the three REALTOR® affiliated Multiple Listing Services in Massachusetts via 10K Research and Marketing.
Editors and reporters: Please note that the term Realtor is properly spelled with an initial capital “R”, per the Associated Press Stylebook.