Locally and nationally, the month of March was one for the record books for home sales.
Massachusetts single-family home sales in March were the highest for the month since 2006, according to a new report from The Warren Group, publisher of Banker & Tradesman.
The median single-family home price reached $335,500, a 6.5 percent increase from $315,000 in March 2016, and just shy of March 2007’s median of $340,000.
Year-to-date, single-family home sales were up 2.2 percent in the first quarter compared to the same period in 2016, while the median price was up 7.2 percent.
Condominium sales were up by double digits for the second year in a row; 1,853 were sold in March, an increase of 23.6 percent from March 2016, which was in turn up 26 percent compared to 2015. Condo sales for the first quarter were up 11.8 percent compared to the same period in 2016, while the median price was up 8.5 percent.
Nationally the picture was just as bright, at least for new home sales – new single-family home sales soared 25.8 percent in the Northeast in March, reversing the prior month’s 24.4 percent plunge, according to an analysis from Reuters. (New home construction, however, remains a challenge and in issue in the Massachusetts market, especially in metro Boston.)
The inventory of new homes on the market increased 1.1 percent to 268,000 units in March, the highest level since July 2009. Still, new housing stock remains less than half of what it was at its peak during the housing boom in 2006.
If the first quarter is any indication, 2017 will be another record-breaking year for home sales in Massachusetts. Already many communities have surpassed their 2007 peaks and each month brings news of another lift in sale prices. To be sure, some of the higher-end markets are cooling slightly – there’s still a lot of super-luxury inventory out there, and only a few buyers interested in the $10 million-plus range – but most inventory in the middle and upper ranges are going under agreement as quickly as they are listed.
Condos especially are hot commodities. Many are in desirable locations close to offices or transportation. Historically the smaller spaces came with smaller price tags, but that too is changing; condo median prices are more volatile month to month than single-families, but the gap between the two is closing. In fact, the median price for condo was $5,000 more than that of a single-family in March 2016 – for the first time in the state’s history.
The jumps in the number of condo sales is also noteworthy, as developers begin to bring online developments in the city and surrounding communities. For now the condo boom is making money for everyone involved, and their popularity seems unlikely to wane in the coming years. Prices and number of sales will no doubt continue to climb in the months ahead.
