The Massachusetts Association of REALTORS® (MAR) reported today that the number of homes and condos put under agreement in the month of April increased over last year while median prices saw a hike year-over-year. The median price of a condo was higher than the price of a single-family home for the second month in a row. April's "Hot Topic" question found that a majority of REALTORS® have seen multiple offers in most of the home transactions they've been a part of in 2018.
April Pending Sales
|Homes||April 2018||April 2017||% Change|
|Total Sales||6,279||5,399||+ 16.3%|
|Median Price||$385,000||$360,000||+ 6.9%|
Pending sales have been up 11 of the last 12 months.
|Condos||April 2018||April 2017||% Change|
|Total Sales||2,438||2,117||+ 15.2%|
|Median Price||$386,000||$345,000||+ 11.9%|
Pending sales have been up 11 of the last 12 months.
"Rising prices for condominiums makes it harder for younger and first-time buyers to own in or near the city," said 2018 MAR President Rita Coffey, general manager of Century 21 Tullish & Clancy in Weymouth. "We need more housing so our workforce can afford to stay in Massachusetts."
REALTOR® Market & Price Confidence Indexes
|Confidence Index||April 2018||April 2017||% Change|
|Median Price||77.44||80.34||- 3.6%|
Measured on a 100-point scale, a score of 50 is the midpoint between a strong (100 points) and a weak (0 points) market condition.
"Despite small dips since last year, REALTORS® confidence in both the market and home prices remain strong as we head into the spring market." said Coffey.
Monthly Hot Topic Question
The April "Hot Topic" question asked REALTORS® how they would describe the amount of multiple offers they've seen in the transactions they've been involved in since the start of 2018, especially with inventory at historically low levels. Of those who responded, a majority responded that either most of their transactions (36%) or all of their transactions (22%) have seen multiple bids since the start of 2018. Fourteen percent of respondents said that none of their transactions in 2018 had multiple bids, while 12 percent said that just a few did. About eight percent said that half of their transactions had seen multiple bids, while a remaining six percent said only a quarter of their transactions had.
"The Massachusetts housing market is highly competitive, especially with inventory at such historically low levels," said Coffey. "Now, most homes going on the market will see multiple bids due to the sheer lack of homes for those looking to buy."
About the Data Sets
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" happens 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.
The Massachusetts REALTOR® Market Confidence Index (RMCI) and Price Confidence Index (RPCI) are based on monthly responses from a random sampling of Massachusetts Association of REALTORS® members on the state of the housing market. More specifically, the survey asks members two basic questions pertaining to the real estate business in their market area in Massachusetts.
The REALTOR® Index Methodology
The Massachusetts REALTOR® Market Confidence Index (RMCI) and Price Confidence Index (RPCI) are based on monthly responses from a random sampling of Massachusetts Association of REALTORS® members on the state of the housing market. More specifically, the survey asks members two basic questions pertaining to the real estate business in their market area in Massachusetts:
• How would you describe the current housing market?
• What are your expectations of home prices over the next year?
In addition to these standard questions, the survey each month includes one wildcard question that changes each month and is based on an industry hot topic.
The RMCI is calculated in the following way. Respondents indicate whether conditions are, or are expected to be strong (100 points), moderate (50 points), and weak (0 points). The results are the average score for each question. A score of 50 is the threshold between a strong and a weak condition. Similarly, the question about home prices over the next year (REALTOR® Price Confidence Index) is calculated using five categories: Rise 0-5% (75 points), Rise 5%+ (100 points), Level (50 points), Fall 0-5% (25 points), and Fall >5% (0 points).
About the Massachusetts Association of REALTORS®:
Organized in 1924, the Massachusetts Association of REALTORS® is a professional trade organization with more than 24,000+ 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 capitalized letters and the registered trademark symbol, per the Associated Press Stylebook.