Condominium sales in Western Massachusetts rose significantly during the second quarter of the year. A first-floor three-bedroom condo at this 26 Salem Place address in Amherst is available for sale for $145,900.
Communities in the western part of the state may not be known for condominium living, but condo sales there surged more than 20 percent during the second quarter, according to a recent report.
Bay State condominium sales hit an all-time record high for a single quarter during the second quarter of this year, with the steepest percentage increase occurring in Western Massachusetts.
While Greater Boston and the Northeast region of the state registered the majority of condo sales, with more than 3,100 units sales, condo sales jumped 24 percent in Western Massachusetts during the second quarter compared to a year ago, according to the Massachusetts Association of Realtors.
The increase in condo sales comes at a time when single-family home sales in Massachusetts, including Western Massachusetts, have fallen.
“We’ve had a significant leap in value and desire for condos,” said Christine Megliola, broker-owner of Upton-Massamont Realtors, which has offices in South Deerfield, Northampton and Shelburne Falls.
Realtors in Franklin and Hampshire counties, and those serving Northampton, a college community in Hampden County, said that there is so much demand for condominiums that they sell rapidly, often within weeks or even days of coming on the market.
Some Realtors theorize that the jump in condo sales stems from investors who have seen home prices peak during the last few years and have been eager to sell at top dollar. The condominiums are usually snatched up by other investors or by buyers searching for a home.
Other real estate agents claim that retirees who desire maintenance-light living and first-time buyers who are looking for more affordable options are fueling the demand. And unlike the Eastern part of state, which has seen a steady rise in the inventory of for-sale homes, communities in Western Massachusetts still have a short supply of homes on the market.
“There are people that want to retire in the Pioneer Valley,” said Linda Rotti Walker, general manager of Jones * Town & Country, which operates offices in Amherst, Northampton and Belchertown. “In terms of location, location, location the Pioneer Valley has it, at least in Franklin [and] Hampshire counties.”
Walker attributes the increase in condo sales in Franklin and Hampshire counties to property owners who have seen prices appreciate and are ready to cash in.
There are few homes on the market priced under $150,000 in Franklin and Hampshire counties, according to Megliola, and there aren’t many in the price range of $150,000 to $200,000. Homes in those price ranges are in demand and sell quickly, she said.
The average selling price for condos during the second quarter in Western Massachusetts, which includes Berkshire, Franklin, Hampshire and Hampden counties, rose to $129,761 during the second quarter, a 7.5 percent increase from the $120,758 average selling price posted during last year’s second quarter.
However, the price increase pales in comparison to other parts of the state, including communities in the Southeast and on Cape Cod, which saw average selling prices for condos escalate 32 percent and 24 percent, respectively.
A total of 235 condominium units were sold in Western Massachusetts during the months April, May and June, according to MAR. The majority of condominium sales, or 145 unit sales, was concentrated in Greater Springfield, which includes 28 communities.
Greater Springfield’s condo sales in the second quarter were 14 percent higher than the prior year. However, Franklin and Hampshire counties saw condo sales soar 40 percent during the second quarter to 63 units from 45 during the same months in 2002.
Overall condo sales in Massachusetts increased 6.5 percent from a year ago, setting a new sales record for most condos sold in a single quarter this year, according to MAR. There were 4,606 condos sales in the Bay State, up from 4,325 during the second quarter of 2002.
Converting to Condo
MAR data show that nearly 27 percent, or slightly more than one in every four homes sold in Massachusetts during the first half of the year, was a condominium. According to the second-quarter MAR report, “at no other time has the percentage of condo sales vs. single-family homes sales ever been greater.”
“People are realizing that if they’re used to apartment living, they can get into a condo for probably less than they are paying for rent,” said Kevin Sears, a property manager and Realtor with Sears Real Estate in Springfield.
“I still think that if people can find a solid [condo] association, buying a condo is really the way to go because you have all the benefits of homeownership and you don’t have all the hassles with regard to maintenance and upkeep,” Sears said.
Recognizing the value of and demand for condos in Northampton, some property owners are converting apartments into condominiums. The conversions have been a “mixed blessing” for the community, according to Megliola, because some residents worry affordable rental units are being replaced with luxury condos.
“We have a five-college community here with lots of need for rentals,” said Megliola.
But for some people, condos offer an idea opportunity for homeownership. The average selling price for a single-family home during the second quarter in Western Massachusetts was $187,829, or $58,068 more than the average selling price for a condo.
“Basically there’s a housing shortage and as a result people are wanting to come into the Northampton market so they’re settling on the condos,” said Mary McGuire, broker-owner of Century 21 Pioneer Valley Associates in Northampton.
In Northampton, however, condo prices sometimes mirror single-family home prices. McGuire, who remembers the years when a buyer could purchase a condominium in town for $25,000 or $50,000, said price have increased dramatically.
“Now the lowest priced condo is $100,000,” she said.
Megliola, of Upton-Massamont, estimates that some downtown condos in Northampton are selling in for more than $200 per square foot. Yet for many buyers the maintenance-free living and downtown location are appealing.
Construction of new condominium projects is rare, with many builders in the region focusing on developments of single-family homes.
“The condo market took a big hit many years ago. They’ve recovered incredibly well,” said Megliola.
