Healthy spring real estate market

The days are getting warmer, the grass is getting greener and spring is in full bloom across New England. As the weather continues to improve, real estate sales are also improving.

According to the Re/Max of New England Monthly Housing Report for March, the region is experiencing an increase in home sales, a decrease in inventory and stabilization in median home prices. These three indicators are all signs that we are enjoying a healthy spring real estate market.

In March, Massachusetts experienced a 14.3 percent jump in year-over-year home sales while the year-over-year median sales price also increased 0.5 percent. This increase in median sales price may seem minor, but Massachusetts is one of just two states to experience a price increase. The other state — Maine — watched its median sales price climb 1.1 percent.

MetroWest also experienced encouraging year-over-year growth in home sales in March. A closer look at the data for Ashland, Framingham, Holliston, Hopkinton, Natick, Sherborn, Southborough, Sudbury, Wayland and Westborough shows these communities experienced an 11.5 percent increase in home sales in March 2012 when compared to March 2011.

The average median price also remained relatively flat, down just 3.68 percent. Although this area did not outpace the 0.5 percent median price increase experienced on the state level, there were several communities which fared much better.

In Wayland, where home sales rose from 10 in March 2011 to 15 in March 2012, the median price increased 8.5 percent, to $540,000. In Hopkinton, where home sales increased 11 percent, the median price increased 6.58 percent to $437,000.

Framingham also watched median sales prices climb almost 3.5 percent, to $266,500. The number of homes sold in this community increased almost 16 percent, from 38 in March 2011 to 44 last month.

Holliston and Sudbury round out the list of MetroWest communities which experienced an increase in median sales price, up 5.96 percent and 1.09 percent respectively.

Price is a carefully watched statistic. After all, real estate is an investment and who doesn’t want their investment to become more valuable? But, one of the other important factors we continue to watch here at Re/Max of New England is the number of homes sold.

Strong home sales continue in Natick. Although the median price dipped 14.75 percent, the number of homes sold here increased 65 percent year-over-year, from 20 to 33. Just 12 homes were sold in Westborough in March 2011, but 16 were sold in March 2012.

That’s an increase of 33 percent.

Home sales remained flat in Ashland and Sherborn, where the same numbers of homes were sold in both March 2011 and March 2012. The only MetroWest community to experience declines in both median price and units sold was Southborough.

The number of homes sold is a very good gauge of consumer confidence. When the number of homes sold begins to steadily increase, that shows more people are becoming comfortable in the current economic climate. As homes are purchased, inventory declines.

Eventually, the prices will begin to rise.

In MetroWest, Massachusetts and New England we have been experiencing strong real estate sales since the fall months. Even throughout the winter, when many buyers and sellers typically settle into hibernation, the market remained extremely active with families and investors looking to scoop up a great deal.

Just as the signs of a healthy spring market are present, many of the indicators of a long-term, meaningful recovery are also present. Interest rates continue to hold steady near historic lows. Employment in Massachusetts is improving each month, with the latest unemployment rate of 6.9 percent well below the national average of 8.2 percent. Pent-up demand is building and consumer confidence is returning.

To me, that sounds like the perfect formula for one of the most successful spring real estate markets we have experienced in recent years.

Dan Breault is executive vice president and regional director of Re/Max of New England in Natick. For more information,

Source: http://www.milforddailynews.com/business/x775168144/Healthy-spring-real-estate-market