With prices stabilized and interest rates under 4.25 percent, buyers appear confident in the Massachusetts housing market. According to the Massachusetts Association of Realtors (MAR), pending sales of both single-family homes and condominiums continued rising in September.
The MAR noted a 22 percent increase in September of 2013 in the number of accepted offers or homes placed under agreement. The 4.901 homes placed under agreement last month was the highest monthly total since the MAR began tracking data. The number of condominiums placed under agreement rose to 1,858 and represented a 13 percent increase.
Despite the increase in future sales, the median selling price remained virtually unchanged. The median selling price for single-family homes was $325,000, a modest increase of $500 over last year. The median price of condominiums remained around $305,000. Analysis of the price data indicates that while sellers appear confident of the market conditions, buyers appear to be waiting for the lowest price.
According to Peter Ruffini, MAR president, an increase in inventory and leveling of prices led to a drop in confidence among MAR members. The organization’s confidence index, which indicates future activity, dropped 14 percentage points to 54.07. The index is based on a 100-point scale with 50 being neutral. Meanwhile, the price index dropped 7 percent to 65.37, adding to a lack of confidence.
While it’s clear that the Commonwealth’s real estate market still has some recovering to do, it’s also clear that progress is being made.