by Eric Berman - email@example.com - 781-839-5507
– July 10, 2019 – The Massachusetts Association of Realtors® (MAR) reported today that the number of single-family homes put under agreement in the month of June went up almost nine percent and the number of condominiums put under agreement went up almost three percent compared to this time last year. This marks 12 straight months of year-over-year increases for single-family homes. The median price for single-family homes put under agreement increased two percent to $440,000, while condominiums had an eight percent increase to $425,000 compared to June of 2018.
In response to the June ‘Hot Topic’ question, Realtors® were essentially mixed in their concerns about the current and future condition of the public transportation system and how it will affect their clients.
June Pending Sales:
“With median prices this high, it is definitely a hot summer in the Bay State, for weather and sales,” said 2019 MAR President Anne Meczywor, broker/associate at Roberts & Associates Realty, Inc., in Lenox. “However, these prices continue to concern us when it comes to first-time homebuyers and their ability to afford a home in Massachusetts.”
June Realtor® Market and Price Confidence Indexes:
“While down from last year, the Market Confidence Index remains at very positive level,” said Meczywor. “However, Realtors® feel less confident about the Price Confidence Index than they did last year, despite the escalating prices,” said Meczywor.
Monthly ‘Hot Topic’ Question:
The ‘Hot Topic’ question for the month of June asked Realtors® how concerned they were that the current and future condition of the public transportation system (i.e. delays, mishaps, fare increases, and future funding questions) would affect their clients.
Of those who responded, 13 percent said that they were very concerned that the current and future condition of the public transportation system will affect their clients. Twenty six percent said they were somewhat concerned, and another 26 percent said they were neutral that the current and future condition of the public transportation system will affect their clients. A remaining 35 percent said they were not concerned that their clients would be affected.
“Public transportation and its future impact on buying and selling decisions is mixed among Realtors® who responded to the survey,” said Meczywor. “While the biggest group was made of those Realtors® who were ‘somewhat concerned’ or ‘very concerned,’ the second biggest group were those who were ‘not’ concerned.”
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 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.
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 25,000+ 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.