May Home Sales Improve While Prices Rise
The median home price rose for the eighth consecutive month, as home sales put up their strongest May in years, according to two firms tracking real estate data.
The Warren Group of Boston said home sales were up more than 6 percent in May, reaching their highest level for the month since 2006, with 4,820 single-family homes sold. That was compared to 4,540 sales last year. May was the first month since January that sales increases year-over-year.
Data from the Massachusetts Association of Realtors (MAR), showed fewer sales for May, although still a marked improvement over last year. According to MAR, there were 4,775 single-family home sales in May, up 8.5 percent from the 4,383 sold during the same time last year. It was also a 36-percent increase over April sales.
"With each month of sales and price increases, we should begin to see the number of homes for sale start to increase, which is good for the market," said 2013 MAR President Kimberly Allard-Moccia.
In Worcester County, May sales were up nearly 7 percent, to 633, while sales in Middlesex County jumped by 11.5 percent to 1,103, according to The Warren Group.
The Warren Group said year-to-date sales were down slightly from 16,098 to 16,068 statewide, including a decrease of 1.8 percent in Worcester County. However, in Middlesex County, they were up 6 percent to 3,520.
"Now that we're well into the prime spring selling season, activity is increasing for sales volume as expected," said CEO Timothy M. Warren Jr. "We're expecting home sales to continue to rise on a year-over-year basis this summer. Median prices have increased by double-digit percentages for four straight months and show no signs of slowing."
The median price of single-family homes in the Bay State was up nearly 12 percent over a year ago, to $324,500. It was the highest median price recorded so far for 2013, The Warren Group said. MAR said the median price was slightly higher for May, at $325,000, up 8.7 percent over last year. It was a 3.8 percent increase from April's median price of $313,000.
"The rise in prices has been a result of tight inventory," Warren said. "It's concerning to see prices rise at this rapid rate. Pent-up demand for homes from buyers who postponed their purchase plans is driving up prices. Consumers are rushing to buy before prices and interest rates get too high."
The median price in Worcester County rose about 11 percent in May over last year, to $228,000. Meanwhile, it was up nearly 9 percent in Middlesex County, to $425,000.
Read more
WBJ Web Partners
Most Recent
Most Recent
0 Comments