Biggest annual increase since final month of 2010 home buyer tax credit
WALTHAM, Mass. – May 14, 2013 – The Massachusetts Association of REALTORS® (MAR) reported today that more pending home sales were reported in the month of April than in any month since January 2004 when MAR began tracking this data. While not an all-time high, condominium pending sales hit their second highest point. Pending sales figures (also called homes under agreement) are a leading indicator of actual housing sales in Massachusetts for the following 2-3 months.
“Buyers came out in force to make offers on the limited number of homes for sale in April,” said 2013 MAR President Kimberly Allard-Moccia, broker-owner of Century 21 Professionals in Braintree. “While the activity is positive, we need more homes on the market to make sure prices don’t spike up too quickly, and as a result, push people out of the market because of the high cost of homes.
The number of single-family homes put under agreement in April was up 32.8 percent compared to the same time last year (5,948 homes in 2013 from 4,478 homes in 2012). This is the most homes that have gone under agreement in any month that the Association has available data (starting in January 2004). This is also the biggest monthly year-over-year increase since April 2010, the final month to take advantage of the home buyer tax credit. On a month-to-month basis, single-family homes put under agreement were up 38 percent compared to 4308 homes put under agreement in March 2013.
The number of condos put under agreement in April was up 37.4 percent compared to April 2012 (2,435 units in 2013 from 1,772 units in 2012). This is the 2nd most condos to go under agreement since March 2005 when there 2,501 units to do so. On a month-to-month basis, condos put under agreement went UP 29 percent from 1,888 units in March 2013.
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.
Monthly pending (or under agreement) data and closed sales data comes from the three REALTOR®-affiliated Multiple Listing Services in Massachusetts. They are the Berkshire County Multiple Listing Service, Cape Cod & Islands Association of REALTORS® Multiple Listing Service, Inc.; and MLS Property Information Network, Inc. The data is compiled by 10K Research and Marketing, Inc. and updated each month. As a result, previous data may change after the reports have been run.
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.
Editors and reporters: Please note that the term Realtor is properly spelled with an initial capital “R”, per the Associated Press Stylebook.