WESTFIELD — The number of single-family homes sold in Massachusetts last month jumped to the highest January level since 2007.
Two organizations that track the market also reported today that median prices jumped by double-digit percentage points when compared to January 2013.
The Warren Group, a Boston-based publisher of real estate data, reported a 5 percent jump in sales year-over-year and a nearly 13 percent rise in the median price to $315,000.
“After ending 2013 on a mini slump for housing sales, these are impressive numbers for the middle of winter,” said Timothy M. Warren Jr., CEO of The Warren Group. “Still, low inventory continues to plague the market. The market needs more sellers to list their homes for sale in order to keep the rally in real estate moving ahead.”
“Because we experienced a seven-year slump in the real estate market there is pent-up demand for homes to purchase. The lack of homes available to purchase is causing prices to grow at these double-digit rates. Buyers are hoping that the spring market will bring many more homes for sale and provide more choice,” Warren said.
The Waltham-based Massachusetts Association of Realtors reported a more modest sales increase of just less than 1 percent. A more than 14 percent increase in median prices to $320,000 made it 16 consecutive months of increases.
The organizations use slightly different numbers in their calculations.
Realtors President Peter Ruffini said prices are being driven by buyer demand and low inventory.
“The continued combination of buyer demand and a shortage of inventory resulted in prices rising in January,” he said. “Buyer demand also drove sales up, which puts emphasis on the need for more home sellers to enter the market. Rising prices mean more equity for homeowners and therefore a greater number may be in a better position to sell.”
“Per MLSPIN, in Westfield, January sales are up from 16 in 2013 to 19 in 2014, and sales prices increased by approximately 3 percent, as well,” said Lisa Oleksak-Sullivan, Realtor with Coldwell Banker. “The year’s real estate market is off to a great start, the spring market just ahead. Inventory is low and buyers are looking to make their purchases while the interest rates are still good.”
REALTORS® are concerned about the negative impact that rate increases through the National Flood Insurance Program, as a result of the Biggert-Waters Flood Insurance Reform Act, are having on the Massachusetts real estate market. However, a bill filed by Massachusetts Attorney General Martha Coakley and Massachusetts House Speaker Robert DeLeo could help homeowners in flood zones and preserve home values.
“As an Association, we have been tirelessly working to address the drastic impact of the federal changes to flood insurance. This bill offers our state the chance to protect its homeowners impacted by the flood insurance changes from Provincetown to Pittsfield. We greatly appreciate the effort of the Attorney General Coakley and Speaker DeLeo in addition to other state legislators like Representative Jim Cantwell who’ve made this a priority,” said Ruffini.
Without affordable flood insurance, homeowners located in flood zones could default on their mortgages due to their inability to afford their new rates. Consequently, the value of a home would be severely reduced.
The proposed legislation, an Act relative to flood insurance, would prohibit lenders from requiring homeowners to purchase flood insurance in an amount that exceeds the outstanding balance of their mortgage, requires coverage for contents, or includes a deductible of less than $5,000. Tying the amount of coverage to the outstanding mortgage balance, instead of the replacement value of the home, would lower premiums for the homeowners impacted by the new change.
