Newton’s Top Realtors
Massachusetts single-family home sales hit a 10-year high for February
The Massachusetts Association of Realtors reported on Tuesday that pending sales of single-family homes hit a 10-year high for the month of February, the latest indicator yet that the market’s momentum is carrying over from 2013.
Pending sales figures, also called homes under agreement, are a leading indicator of actual housing sales in Massachusetts for the next 90 days.
MAR President Peter Ruffini and regional vice president at Jack Conway & Co. said poor weather failed to dampen buyer demand. He also said an improving economy and low interest rates fueled accepted offers last month.
The number of single-family homes put under agreement increased to 3,587 last month, a 20.4 percent increase compared to the year-earlier period when 2,980 homes went under agreement. February marked the 12th-straight month of year-over-year increases and the most homes put under agreement in February since 2004, when there were 3,612 homes placed under contract. On a month-to-month basis, single-family homes put under agreement rose 13.8 percent compared to the 3,151 homes put under agreement in January.
The median sales price of single-family homes put under agreement in February was $295,600, up 7.5 percent from $275,000 in February 2013. On a month-to-month basis, the median P&S price was down 7.7 percent from the $320,000 posted in January.
Condominiums placed under agreement also increased by double digits. The number of condos put under contract in February was 1,533, up 17 percent compared to February 2013 when purchase and sales agreement totaled 1,310. This is the most number of condos put under agreement in February since 2007 when 1,777 units were put under agreement. On a month-to-month basis, condos put under agreement were up 7.9 percent from 1,421 units in January.
The median sale price of a condo put under agreement in February was $282,500 which was up 8.9 percent from $259,450 in February 2013. On a month-to-month basis, under agreement median prices were down 5.9 percent from $300,000 in January.
Real estate agents say the tracking of signed purchase and sales agreements or “pending sales” provide reliable information about where the real estate market is heading in the months ahead. 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 transfer a deed. MAR’s data only includes deals made through the MLS systems in Massachusetts and only includes sales involving a broker.