According to the RE/MAX of New England 2013 Housing Forecast, New England should expect to see continued improvement in the housing market this year with further growth in both total transactions and median price in most areas. The report also projects New England will largely shift from a buyer’s market to a more balanced market as 2013 progresses.
According to the report, record low interest rates were a driving force behind strong growth in year-over-year single-family, multi-family and condominium sales in 2012. With the exception of Connecticut, which experienced a -2.3 percent decline in multi-family home sales, each state experienced growth in all three categories of transactions.
Connecticut single-family home sales increased 14.9 percent year-over-year while the median price declined -3.1 percent to $213,873. Condominium sales rose 8.2 percent. A closer look at Fairfield County home sales is included in the report.
Home transactions in all three categories surged ahead in Massachusetts. Single-family and condominium transactions both increased 21.6 percent year-over-year, while multi-family home sales grew 5.3 percent. The median price of single-family home sales also continues to stabilize. In 2012, it remained virtually flat, declining only -0.1 percent to $287,920.
Holding steady at just over $201,000, the average median sales price of a single-family home in New Hampshire remained flat in 2012. Single-family home transactions increased 21.2 percent year-over-year, while condominium transactions grew 19.3 percent. Multi-family home transactions also increased 2.2 percent.
Rhode Island single-family home sales posted the largest year-over-year gains in New England in 2012, up 24.2 percent year-over-year. Condominium sales increased 13.7 percent, and multi-family home sales grew 10.1 percent. Average median price for single-family homes declined -5.9 percent compared to 2011.
Single-family home transactions increased 15.2 percent in Vermont, while the median price declined -2.2 percent. Condominium transactions rose 18.1 percent but the average median price dropped -3.4 percent. Multi-family home transactions virtually doubled, up 49.3 percent while the average median price declined -7.9 percent.
“The New England housing market finished 2012 on a high note, with each state experiencing strong year-over-year growth in total transactions, and RE/MAX of New England is excited to see that momentum continue in 2013,” says Dan Breault, Executive Vice President and Regional Director of RE/MAX of New England. “As the amount of available inventory continues to shrink, watch for a gradual appreciation in median home prices in the second half of 2013 as the market begins to shift from a buyer’s market to a balanced market which favors both the buyer and the seller.”
Strong home sales during 2012, especially in the second half of the year, helped reduce the amount of available inventory. Breault says as this pool of properties continues to shrink in 2013, it will lead to a slow but gradual increase in median home prices, which will result in more homes being sold at their actual fair market value.
“Shifting from a buyer’s market to a more balanced market is an important sign that the housing market is recovering in a healthy manner,” says Breault. “This big step in the recovery should instill further confidence in both buyers and sellers.”
To read the entire RE/MAX of New England 2013 Housing Forecast, visit remax-newengland.com.