Pending single family home sales are up 27% and condos 38% from the same time last year according the the Massachusetts Association of Realtors. This March pending home sales have increased for the 9th consecutive month for year-over-year comparisons. Although these are pending sales, meaning the buyer and seller have agreed on the terms of the sale and have signed an purchase and sale agreement however not yet closed. These sales can be a forecasting of where the local housing is heading. The more definite and better measure of the market is the completed sales, which will be released later this month.
The published sales for February have local real estate agents hopeful, but cautious. The federal home buyer’s tax credit is to expire later this year which has been credited with a good portion of the housing market boost. This raises concerns that a rise in interest rates combined with the loss of the federal tax credit will cause sales to fall.
The figure release on the pending March sales today included a statement from the president of the Massachusetts Association of Realtors:
“It appears that the record rains in March didn’t keep buyers from taking advantage of the market conditions and making offers on homes. Whether the rain will impact how many of these deals close is still a question, but the buyers are out there and that is a good sign for the market.”
–Kevin Sears