by Eric Berman - firstname.lastname@example.org - 781-839-5507
WALTHAM, Mass. – March 11, 2020 – The Massachusetts Association of Realtors® (MAR) reported today that the number of single-family homes and condominiums put under agreement in February was up 25 percent and almost 19 percent, respectively, from this time last year. This marks 12 straight months of year-over-year increases for both property types. Median price for single-family homes put under agreement saw almost a five percent increase to $396,900 while condominiums saw a 13 percent increase to $395,000 compared to February of 2019.
The February ‘Hot Topic’ question asked Realtors® what has been the most popular method of communication between them and their clients over the past year.
February 2020 Pending Sales:
“Buyers made their presence known in February by taking advantage of mild weather and very low interest rates to push the number of accepted offers up over 25 percent,” said 2020 MAR President Kurt Thompson, broker at Keller Williams Realty North Central in Leominster. “The competition for the limited number of homes for sales remained very high and low interest rates gave buyers more buying power in our high price market.”
February 2020 Realtor® Market and Price Confidence Indexes:
“Realtor® confidence continued on its climb to very positive territory in February with lower interest rates having a positive effect,” said Thompson.
Monthly ‘Hot Topic’ Question:
The February ‘Hot Topic’ question asked Realtors® what they thought was the most popular method of communication when speaking with their clients over the past year.
The most popular form of communication between Realtors® and their clients over the last year was text messaging (76%), with emailing coming in second place (42.6%). Nineteen percent of Realtors® responded that speaking on the phone was the most popular form of communication and seven percent of Realtors® reported that in-person meetings were the most popular. Only two percent reported that communicating over Facebook messenger was the most popular and zero percent claimed that the most popular form of communication was Twitter direct messaging or LinkedIn messaging.
In a similar question asked in 2016, emails were the most popular form of communication with text messages coming in second, and phone calls coming in third. In-person meetings, Facebook Messenger, and Twitter Direct Message each received less than one percent.
“Realtors® are always going to communicate with their clients in the way their clients want to be communicated with and clients now prefer texting,” said Thompson.
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*. (*because of an error in the question design, no hot topic question will be released with the January Future Indicators Release)
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.