Media Contact: Eric Berman - 781-839-5507 - eberman@marealtor.com

Massachusetts Pending Sales and Median Price Up Again in June

by Eric Berman - eberman@marealtor.com - 781-839-5507 | Jul 11, 2017

Over half of Realtors® surveyed have been involved with at least one all-cash home sale since start of 2017

 WALTHAM, Mass. – July 11, 2017 – The Massachusetts Association of Realtors® (MAR) reported today that single-family pending home sales were up over nine percent in June from last year. Pending condominium sales were also up more than 12 percent. The median price for both single-family homes and condos saw a hike, with the single-family median price rising over the $400,000 mark. Realtors® confidence both in the market and in home prices dipped slightly in June. This month’s “Hot Topic” question finds that the majority of Realtors® surveyed have had at least one transaction that was an all-cash deal (i.e. no mortgage involved) since the beginning of the year.

June Pending Sales: 

Single Family

June 2017

June2016

% Change

Sales

6,723

6,128

9.7%

Median Price

$410,000

$380,000

7.9%

  • Pending sales have been up 51 of the last 52 months 

Condominium

June2017

June2016

% Change

Sales

2,596

2,307

12.5%

Median Price

$370,000

$349,900

2.9%

  • Pending sales have been up or flat 20 of the last 22 months 

“The increase in homes put under agreement this month may be a positive sign for a spring market that has suffered plummeting inventory,” said 2017 MAR President Paul Yorkis, president of Patriot Real Estate in Medway. “However, median prices have continued to rise, which can push some buyers out of the market.”

 
Realtor® Market and Price Confidence Indexes: 

Confidence Index

June2017

June2016

%Change

Market

80.73

80.97

-0.29%

Price

71.79

73.87

-2.82%

  • The Realtor® Market Confidence Index went down for the first time in 27 months
  • The Realtor® Price Confidence Index went down for the first time in six months
  • 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  

 

“The Realtor® Market Confidence Index has dipped year-over-year for the first time in over two years, indicating that Realtors® are growing concerned about some of their buyers being able to succeed in this market,” said Yorkis. “However, both indexes reveal that ultimately Realtors® remain positive. We just need to see more inventory to keep up with the demand.”

Monthly ‘Hot Topic’ Question:  

The June “Hot Topic” question asked Realtors® how many of their buyer or seller transactions have been cash deals since the start of the year. Of those Realtors® who responded, about 47 percent reported that some of their transactions had been cash deals. Another 44 percent responded that they had seen no cash deals since the start of the year. A remaining nine percent reported that either half of their transactions (5%) or more than half (4%) of their transactions had been cash deals.

“We see prices continue to go up, but there is still a segment of buyers who are paying all cash when buying a home. It’s good for sellers, but can be especially hard on first-time homebuyers who need to use a mortgage,” said Yorkis.

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, the previous data may change after the reports have been run. 

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 an initial capital “R”, per the Associated Press Stylebook.