The low inventory levels have created increased demand for homes which has triggered bidding wars on homes and affected prices.
Waltham, MA (PRWEB) May 01, 2013
McGeough Lamacchia Realty reports building permits in Massachusetts are up 21 percent this quarter compared to the first quarter in 2012. According to the U.S. Census Bureau, 2,586 building permits were issued in the first quarter of this year compared to 2,145 issued in the same period last year. There were 900 building permits issued in March, the highest amount issued for the month since 2007.
Across the country, building permits for single family homes have been steadily increasing since February 2011 when there were just 379,000 building permits issued.
McGeough Lamacchia Realty say even with the increase in building permits housing inventory levels are still very low.
“The low inventory levels have created increased demand for homes which has triggered bidding wars on homes and affected prices,” says John McGeough, co-broker and owner of McGeough Lamacchia Realty.
Home prices in Massachusetts rose for the second month in a row in March. The average selling price for a home was $321,227, up 5.17 percent compared to March 2012. However, the number of home sales also dropped for the second consecutive month. There were 23 percent fewer homes for sale in March 2013 compared to March 2012, which contributed to a 1.5 percent drop in the total number of home sales in Massachusetts compared to the same period last year.
In a statement Monday, National Association of Realtors chief economist Lawrence Yun, said, “We need a housing supply of over 6 months to have a generally balanced market between home buyers and sellers, but it's unlikely we'll get there without greater increases in housing construction.”
McGeough Lamacchia say that the fact that building permits are up is a positive sign for the housing market because new home construction not only fuels the economy, it will help increase the inventory of homes for sale once these homes are completed. The number of permits this quarter is 43 percent fewer permits than the 4,564 building permits issued in Massachusetts for the first quarter of 2005, at the height of the housing boom.
“While this quarter’s growing numbers are encouraging, they are still way below the levels needed for a more balanced market,” says Anthony Lamacchia, co-broker and owner of McGeough Lamacchia.
About McGeough Lamacchia:
John McGeough and Anthony Lamacchia are the number one Real Estate Agents in Massachusetts and named one of the Top 100 Real Estate Teams by the Wall Street Journal in 2010. They are a full service real estate agency serving home buyers and sellers Massachusetts and New Hampshire.