In the recent past, the real estate market in Brookline has shown some unprecedented vibrancy with pending sales going up and prices appreciating significantly. So far in in 2016, the spring season turned out to be one of the busiest in years with demands for homes going up and pending sales off the charts.
However, the greatest question experts and homeowners are asking themselves is, which direction are real estate values headed in Brookline and across the Boston area?
This is an important indicator and a key measure of market activity. It traces homes where buyers and sellers have already signed a sales and purchase agreement, but are yet to officially close. The closure process often takes about a month or two.
Despite the impressive pending sales statistics as recorded in February, homes and condos fell for the first time in a year. This is according to a report done by the Massachusetts Association of Realtors.
According to economics and industry experts, there is a general belief that at some point, market participants are going to start pushing up against the fact that it is quite expensive to purchase a home. At this point, even smaller increases will be palpable and will start deterring potential home buyers.
Reading the Real Estate Numbers
In February 2016, the median price of homes within the pending sales category fell by about 2.3% to $308,750 while condos dropped by 2.8% to average at $285,000. On the contrast, the percentage of pending home sales jumped 75% in February this year compared to how it was last when almost the entire region was buried under snow.
In raw numbers, the 4,521 pending sales recorded in February were the highest since 2004. Condo pending sales were also up by slightly over 61%.
The price projections for 2016 by industry experts is a bit lower for Boston area including Brookline, the argument being in 2015, prices increased by 6 percentage points and as such there is likely to be a lull especially in the second half of the year. That being said, there is a general optimism around spring and this is likely to result into a bump in the prices.
In 2015, home prices fell in some of the exclusive suburbs in Boston such as Concord, Lexington, Sherborn, Lincoln, Weston, and Cohasset. In Belmont, Wellesley, and Winchester, the prices stalled out. The data was gathered by the Warren Group.
What All This Means for the Housing Market
Despite the mixed feelings projected by the market, there are still people who strongly argue that the real estate prices will keep on rising with the fueling factor being the shortage of condos and homes for sale in Brookline and its neighborhoods.
The number of listing has been falling thanks to residential construction lags which have made demand to outstrip supply. January 2016 saw a decline of about 20% compared to the start of 2015. Generally, the projection of experts on the direction of the trend is that prices will continue rising throughout the year until demand and supply come to an nexis point. Lastly when you’re ready to move we have used this company www.tdymoving.com for all are moves and they have been great.