WESTFIELD — Sales of single-family homes in Massachusetts fell slightly in December compared with the same month the year before, the second consecutive year-over-year sales decrease, two groups that track the market announced Wednesday.
Median prices, however, continued to rise.
The Massachusetts Association of Realtors and The Warren Group, a Boston-based publisher of real estate data, said the number of sales were down less than 1 percent when compared with December 2012, a more modest drop than in November.
The sales drop of less than one-quarter of 1 percent did not faze the Waltham-based Realtors group.
“After a slight blip in November, buyers were able to help sales get back on track in December,” President Peter Ruffini said. “While 2013 will be remembered for a lack of homes for sale, price increases have improved overall home equity, which should help push sellers into the market in 2014.”
The Warren Group CEO Timothy Warren Jr. said low inventory combined with rising interest rates at the end of the year slowed the market.
“Sales and prices set a torrid pace in the third quarter of 2013 and through October. Now the market is taking a breather,” he said.
The number of condominiums sold and median condo prices were up in December, according to both groups.
Year-over-year sales of condominiums have gone up 23 out of the last 24 months, according to the Realtors, which reported a 6 percent sales jump.
The Warren Group reported a more dramatic 15 percent jump year-over-year.
“As we consider national and regional economic trends, real estate market data is very localized,” said Heather Witalisz, managing partner of Witalisz & Associates, Inc. “For example, the average sale price for single family homes in Westfield in 2013 increased by about 7 percent compared to the same time frame last year.”
The time on market is about 30 days shorter, yet the number of units sold has decreased, according to Multiple Listing Services.
“Buyer confidence is on the rise which is helping get buyers off the fence and purchasing homes,” said Ted Cassell, broker for Park Square Realty in Westfield. “In 2014 already, the showing activity and pending sales are way up for this time of year.”
“It is anticipated that interest rates are going to gradually increase and buyers want to lock in a great rate now,” he said. “Although even if rates do rise, the rates are fantastic by historical standards.”
The median price of a single-family home jumped more than 6 percent to $320,000, according to the Realtors. The Warren Group calculated an almost 4 percent increase in the median price to more than $311,000. The groups use slightly different methods in their calculations.
“Home sellers are seeing prices increase and they are tired of waiting to downsize or move up,” said Casell. “So they are selling now as they see the market improving. In some instances, we are seeing multiple offers coming in on desirable properties.”
“Park Square Realty had a very strong year in 2013 with sales volume and number of homes sold up 18 percent over 2012,” he said. “In Westfield specifically, Park Square Realty sold 176 properties in 2013 versus 158 properties in 2012.”
“In general, there is a sense of optimism among agents, lenders, buyers and sellers that 2014 is going to be a great year for real estate,” he said.
“In reviewing the overall market for Hampshire and Hampden Counties, the number of sales of single family homes actually went up about 6 percent,” said Lisa Oleksak-Sullivan, Realtor with Coldwell Banker. “However, prices went down slightly by 3 percent. This is comparing the December 2012 market to the December 2013 market.”
“In Westfield the market varied slightly from the western Mass. statistics,” said Sullivan. “The number of sales also went up about 25 percent. However, the prices went up as well by about 4.5 percent.”
“Westfield is a strong market, and accordingly it’s a good time for sellers to put their homes on the market,” she said. “Inventory is low which means less competition for the sellers.”
“The spring market typically heats up around March 1, so if sellers want to take advantage of getting a jump start, February is the time to list their home,” Sullivan said. “Interest rates are still low, giving the buyers more purchasing power.”
“It’s a healthy market,” she said.
