December 19, 2014
SOUNDBITES FROM A WEBINAR BY TIM WARREN, THE WARREN GROUP:
- Single family sales in Massachusetts rose 18.4% in 2012 and 4.9% in 2013, but have fallen 2.67% year to date in 2014.
- Pending sales have risen for 21 straight months, often by double digits, but closed sales have fallen. Issues with home inspection and financing are contributing factors.
- In most markets, prices are well below the peak.
- National statistics show that first time buyers are a declining share of the market.
- Apartments offer more flexibility for job mobility
- Homes are dismissed as an investment opportunity
- There is a boom in condo sales
- Condo sales have beat single family gains in the past three years
- New and upper end condos are popular
- Condos appeal to the foreign investor
- Baby boomers seek the ease of maintenance, the ability to downsize, and a return to urban settings.
- There’s pent up demand. For the ten years between 1996 and 2005, an average of 60,155 single family homes sold per year. In the five years between 2007 and 2011, 41,652 single family homes sold per year. We’re missing approximately 20,000 sales/year or 100,000 homes that didn’t get sold over the past five years.
- 2015 should be a modestly better year for real estate because of an improving economy, added jobs, anticipated price rise, mortgage availability, pent-up demand and room for growth.