The MA real estate market turned in a stellar performance in terms of home sale volume in the first 6 months of 2012. Home sales soared while the inventory of homes for sale got pretty skimpy as the first half of the year drew to a close. MA home sale prices have not gone up at all so far in 2012, but home buyers beware! The first half of the year certainly appeared set the stage for Massachusetts home price appreciation in the future.
Strong home sales across Bay State in first half of 2012
Home sale volume throughout Massachusetts in the first six months of 2012 was up 20.9% compared to year ago levels.
An even more impressive stat is that home sales so far in 2012 are up nearly 5% over the first half 2010. The first 6 months of 2010 saw home sales boom because of then-expiring Federal home buyer tax credits. First half 2012 home sales were up a whopping 30.5% over same period home sales in 2009 when MA real estate withered at the height of the worldwide financial crises.
Tri-county sales also sharply higher
A look at the the regional tri-county market of Massachusetts (Norfolk, Middlesex and Worcester Counties) presents a very similar picture to the one for the overall MA market.
Tri-county homes sales for the first half of 2012 rose 21% compared to the first half of 2011. Sales during the first six months of 2012 outpaced 2010’s first half results by over 5% and outperformed 2009’s first six month sales by nearly 32%.
Home sales in Franklin, MA
Statistically, the Town of Franklin, MA experienced less vibrant home sales in the first half of 2012.
However, Franklin homes were selling briskly throughout the spring 2012 selling season, so the decline in volume likely had more to do with a limited supply of homes (see below) rather than any shift in demand away from this highly-desirable community in the I-495 growth corridor.
Reduced supply of quality homes for sale
As home sales surged ever higher in the first half of the year, the number of homes for sale dropped steadily as 2012 progressed. To put this situation in the most telling context,
I analyzed the supply of homes priced between $300,000 and $600,000, a segment that comprises the meat of the real estate market in many communities in the I-495/west of Boston region.
Statewide, the supply of such prime, high-demand homes available for purchase in June 2012 was approximately 14% lower than June 2011. Looking back at the supply of such homes for June of every year since 2006, the number of such homes available in June 2012 was markedly lower than in any of the previous 6 years.
Tri-county home supplies low
It’s the same low supply of prime homes on the tri-county level as well.
The number of homes priced between $300,000 and $60000 for sale in June 2012 in the counties of Norfolk, Middlesex and Worcester were at their lowest level in going back to June 2006.
Depleted supply of homes in Franklin as well
The supply numbers look no better in the Town of Franklin, MA.
There were only 66 homes in Franklin priced between $300,000 and $600,000 available on at the end of June 2012. That compares to 87 such homes last year and 108 of these prime properties back in June 2007.
In most markets across Massachusetts, buyers are confronting a limited supply of quality homes to choose from as the second half of 2012 gets under way. Combine scarcity with soaring home sale volume and 2012 appears to be setting the table for rising home prices in the future.
MA home prices flat in first half of 2012
It’s a different story looking MA home prices. Despite the very strong gains in home sale volume, home prices in MA remained flat during the first half of 2012.
No matter how you slice the sale price data from the first 6 months of the year, home prices stayed very attractive.
Whether you look at the entire Bay State, the tri-country area (Norfolk, Middlesex and Worcester Counties), the Franklin regional market or even the Town of Franklin, MA itself, median home sale prices in Massachusetts showed little upward momentum during the first half of the years.
Case-Shiller Index confirms flat home prices in MA
The highly-cited S&P/Case-Shiller Home Price Index for Greater Boston paints the same picture of flat MA home prices in 2012:
The seasonally adjusted Case-Shiller Index shown above gives the best view of home prices in metro-Boston. After the price bounce created in 2009 – 2010 by the Federal home buyer tax credits, MA home prices have trended lower. In 2012, they are essentially at or near their 2009 lows.
Historically low rates create buying opportunity as MA economy improves
Mortgage interest rates moved even lower in the first half of 2012.
The drop in rates happened due to concerns about events in the Euro-zone and lingering economic uncertainties in the US. However, the MA economy showed clear signs of health in the first half of 2012 with the Massachusetts unemployment rate dropping to just 6%.
Outlook for home buyers
Reflecting the improving MA economy, MA home buyers in the first half of 2012 capitalized on compelling home prices and mortgage rates at extremely low levels. Homes sold briskly, depleting supplies of quality homes.
This creates a potentially volatile situation for home prices during the rest of 2012. Prospective purchasers should be aware that home prices could start to rise if demand continues to consume the supply of available homes.
With rents in Massachusetts rising to extreme levels, clearly 2012 – 2013 is the time to buy. Those who buy will be very glad they did 5 years from now MA home values look to be a lot higher than they are today. Investment homes anyone?
Outlook for home sellers
The pace of home sales in 2012 has accelerated. Homes priced to market are selling quickly. However, homes that over-price are still getting rejected by the market.
Your opportunity this year is to raise your target selling price to reflect today’s stronger demand without overestimating buyers’ response to your home. While the 2012 market continues to punish over-pricing, home sellers should enjoy more leverage negotiating home selling prices and terms.
The best advice to home sellers in 2012 to to take advantage of current market conditions but remain reasonable and accommodating of the legitimate needs of buyers.
If you need help pricing your home or determining your best housing options, click here.
Copyright ©2012 02038.com
You get more with Warren Reynolds than you do with other top real estate agents. You’ll find in Warren rare knowledge and experience dedicated to helping you achieve all the value that home brings. Warren has a law degree and 20+ years of home selling success in Massachusetts. — talk with Warren today! 508-561-6259
"We have now bought and sold five homes. By far, you have been the best realtor we have worked with. Your professionalism and knowledge are so valuable to your clients. You made this process so easy. "-CB
Make better decisions
and feel in control.
Did you know you can materially improve your home selling success by choosing your marketing agent and brokerage brand wisely? It’s true! A marketing agent with a sterling reputation, backed by a strong brokerage brand, will do wonders for the reception your home gets upon entry to market. Call Warren today! 508-561-6259
"As first time homebuyers we were fortunate to work with Warren. He was a great asset and sounding board. He always gave solid advice. Warren played a pivotal role in helping us negotiate with a difficult seller. We truly benefitted from having Warren in our corner and so will you." -JK
Maximize your home selling success.
Not only is Warren highly skilled and dedicated to protecting your best interests, he will be highly responsive to your needs! He CARES about his clients and is always, always there for them. Why not give it a try? Contact Warren now and see how well he takes care of you! – talk with Warren today! 508-561-6259
"I had many, many questions which Warren was always more than willing to answer with a never ending patience. Throughout the process Warren looked out for my best interest. I may have purchased a garden style condo but Warren treated me like I was purchasing a million dollar estate!" -MP
Get the attention you deserve.
Warren is a very creative real estate practitioner and he uses that creativity in ways that provide important advantages to clients. Creatively runs in Warren’s family! His uncle was Harnett T. Kane, an internationally-recognized investigative journalist and New York Times best-selling author of thirty books about the American South. Experience Warren’s refreshing difference today! 508-561-6259
"Your creative approach to all aspects of my move helped make the transition easy and pleasurable. You were recommended to me by a friend who appreciated your integrity, expertise, friendliness and conscientiousness - qualities that I have witnessed in abundance as we've worked together." -KB
Get creative with Warren.
Warren is a highly dedicated professional in all his real estate dealings. That means he will continue to serve you well, even when others would compromise on their commitments. Warren’s ultimate goals in business are better transactions and greater client satisfaction. Talk with Warren today! 508-561-6259
"As first time homebuyers we were fortunate to work with Warren. He was a great asset and sounding board. He always gave solid advice. Warren played a pivotal role in helping us negotiate with a difficult seller. We truly benefitted from having Warren in our corner and so will you." -JK
Maximize your home selling success.
All real estate agents are legally and ethically bound to be fiduciaries acting in their client’s best interests. His name stands for integrity and he takes his fiduciary duties to you very seriously. He’ll steadfastly put your interests first throughout your home purchase or sale – talk with Warren today! 508-561-6259
"Warren was always there for us. Throughout the process, Warren kept on top of all our concerns. Warren worked for us, and looked out for our best interest. He is a very professional and caring person." - BP
Feel safe and well taken care of.
Warren is a highly dedicated professional in all his real estate dealings. That means he will continue to serve you well, even when others would compromise on their commitments. Warren’s ultimate goals in business are better transactions and greater client satisfaction. His devotion to excellence can demonstrably improve your home buying and selling decision-making and, consequently, your experience of home ownership. Warren constantly stays current on the local housing inventory. And he is conversant with the broader market trends that affect home sales statewide link to Market Updates. Warren knows that the market knowledge he works so hard to maintain and his high standards of real estate practice help him achieve for you the lasting, true value of home ownership. Talk with Warren today! 508-561-6259
"Warren was the finest real estate agent we've ever worked with. This was evident to us in comparison to quite a few realtors we attempted to utilize, as they were not very helpful, understanding or willing to work with us based on our preferences." -SM
“If you think it’s expensive to hire a professional,
wait until you hire an amateur.” Red Adair
Did you know you can materially improve your home selling success by choosing your marketing agent and brokerage brand wisely? It’s true! A marketing agent with a sterling reputation, backed by a strong brokerage brand, will do wonders for the reception your home gets upon entry to market. Warren is known in the local brokerage community as a dependable, highly skilled professional who is a straight-shooter. Other agents like working with Warren because they know they can trust him to be a reliable partner in any transaction. And the Berkshire Hathaway HomeServices brand stands for sound decisions and extraordinary strength and stability. The “Forever Brand” brokerage created by Warren Buffet sets the standard for the real estate industry by focusing not on selling more homes, but rather on selling homes for more!Call Warren today! 508-561-6259
"As first time homebuyers we were fortunate to work with Warren. He was a great asset and sounding board. He always gave solid advice. Warren played a pivotal role in helping us negotiate with a difficult seller. We truly benefitted from having Warren in our corner and so will you." -JK
Maximize your home selling success.
Not only is Warren highly skilled and dedicated to protecting your best interests, he will be highly responsive to your needs! He CARES about his clients and is always, always there for them. In person, by phone, email or text, whenever you need him, you’ll get a prompt response from Warren! Warren’s clients rave about the high degree of consideration and attention they get from him. Why not give it a try? Contact Warren now and see how well he takes care of you! – talk with Warren today! 508-561-6259
"I had many, many questions which Warren was always more than willing to answer with a never ending patience. Throughout the process Warren looked out for my best interest. I may have purchased a garden style condo but Warren treated me like I was purchasing a million dollar estate!" -MP
Get the attention you deserve.
Warren is a very creative real estate practitioner and he uses that creativity in ways that provide important advantages to clients. Creatively runs in Warren’s family! His uncle was Harnett T. Kane, an internationally-recognized investigative journalist and New York Times best-selling author of thirty books about the American South. Warren employs his own creativity by producing compelling marketing, both in print and especially online! His www.02038.com, is a highly effective website promoting the wonderful lifestyle afforded by the Town of Franklin, MA. And his Market Updates content on Massachusetts real estate trends gives home buyers and sellers alike the context they need to make more informed decisions about their housing investments. Warren frequently uses his abilities to devise resourceful solutions to the diverse challenges that threaten to complicate most real estate transactions. Warren has made real estate his career and won many sales awards in his 20+ years in brokerage, including the highly prestigious Chairman’s Circle Gold Award and the elite Centurion Award. Experience Warren’s refreshing difference today! 508-561-6259
"Your creative approach to all aspects of my move helped make the transition easy and pleasurable. You were recommended to me by a friend who appreciated your integrity, expertise, friendliness and conscientiousness - qualities that I have witnessed in abundance as we've worked together." -KB
Get creative with Warren.
You get more with Warren Reynolds than you do with other top real estate agents. You’ll find in Warren rare knowledge and experience dedicated to helping you achieve all the value that home brings. Warren has a law degree and 20+ years of home selling success in Massachusetts. His legal knowledge and decades-long experience in putting — and keeping — real estate sales together give him a better handle on the legal, practical and emotional dynamics of the real estate transaction. Warren uses these skills to empower clients to achieve more! He often anticipates and resolves problems BEFORE they can become serious impediments. Enjoy the sense of trust, security and control that comes from having a highly skilled expert at your side — talk with Warren today! 508-561-6259
"We have now bought and sold five homes. By far, you have been the best realtor we have worked with. Your professionalism and knowledge are so valuable to your clients. You made this process so easy. "-CB
Make better decisions and feel in control.
All real estate agents are legally and ethically bound to be fiduciaries acting in their client’s best interests. But many agents give their fiduciary duties short shrift in their quest for the quickest and easiest path to a closing. Not Warren Reynolds! His name stands for integrity and he takes his fiduciary duties to you very seriously. He’ll steadfastly put your interests first throughout your home purchase or sale. This may make Warren work longer and harder for you than most other agents would. But ultimately, Warren’s diligence and attention to detail is his commitment to an experience that transcends the sale. He wants you to have the confidence and peace of mind that comes with having a true fiduciary protecting you. Discover the difference of working with an agent who does not view you as just another opportunity for a commission – talk with Warren today! 508-561-6259
"Warren was always there for us. Throughout the process, Warren kept on top of all our concerns. Warren worked for us, and looked out for our best interest. He is a very professional and caring person." - BP
Feel safe and well taken care of.