by Eric Berman - email@example.com - 781-839-5507
WALTHAM, Mass. – September 11, 2019 – The Massachusetts Association of Realtors® (MAR) reported today that the number of single-family homes put under agreement in the month of August went up almost 10 percent and the number of condominiums put under agreement went up almost nine 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 almost three percent to $430,000, while condominiums had a three percent increase to $400,000 compared to August of 2018.
In response to the August ‘Hot Topic’ question, almost 81 percent of respondent's report that the topic of pets has come up in at least some of their transactions in 2019.
“It continued to be demand, demand, and demand that pushed accepted offers over $400,000 for homes in August,” said 2019 MAR President Anne Meczywor, broker/associate at Roberts & Associates Realty, Inc., in Lenox. “As a result, we’re seeing affordability going down and that’s something that will keep many potential buyers only potential buyers.”
August Realtor® Market and Price Confidence Indexes:
“Realtors® continued to be confident in the market, despite it being down from the same month last year,” said Meczywor. “At a certain point, Realtors® confidence that prices will go up consistently has waned a bit and we see that reflected in the Price Confidence Index.”
Monthly ‘Hot Topic’ Question:
The ‘Hot Topic’ question for the month of August asked Realtors®, in 2019, how often the topic of pets comes up with clients when it comes to both buying and selling a home.
Of those who responded, five percent said the topic of pets has come up in all of their transactions. Twenty nine percent said the topic of pets has come up in a lot of their transactions, and another 46 percent said the topic has come up in some of their transactions. A remaining 20 percent of respondents said that the topic of pets has come up in none of their transactions.
“Pets are important. I know mine are to me,” said Meczywor. “So, it’s not surprising that current and potential buyers are taking their pets into consideration when looking for their future home.”
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.