McGeough Lamacchia Report Shows Housing Market Recovery in Massachusetts

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The McGeough Lamacchia Mid-Year Housing Report shows an increase in home sales for the first six months of this year compared to the same time period in 2011, one of several signs the housing market in Massachusetts is on pace for recovery.

John McGeough and Anthony Lamacchia are the #1 Real Estate Agents in Massachusetts

John McGeough and Anthony Lamacchia are the #1 Real Estate Agents in Massachusetts

McGeough Lamacchia Realty says there are several indications that the housing market is on pace for recovery: a consistent upward trend in home sales, a decrease in the available supply of homes for sale, a stabilization of the average selling prices for homes, and a reduction in shadow inventory.

The McGeough Lamacchia Mid-Year Housing Report shows a 20% increase in home sales for the first six months of this year compared to the same time period in 2011. According to data provided by the Warren Group for the report, there were 38,345 home sales for all of Massachusetts from January 1 to June 30 this year compared to 31,941 in 2011.

June 2012 marks the sixth month in a row Massachusetts home sales have increased compared to the same period in 2011.

Another indication that the housing market in Massachusetts is starting to recover is the decrease in the amount of homes available for sale, known as the housing inventory. In July 2006 at the beginning of the housing crisis there was a flood of over 54,000 homes that were on the market in Massachusetts. That number has dropped nearly 36% to just 34,739 as of this month. The inventory of homes available for sale is at its lowest point since 2005, which is only about a 5 month housing supply compared to 2011. This means increased competition for homes which affects both the demand for homes as well as selling prices.

Data for the first 6 months of 2012 show average home sale prices in Massachusetts are starting to stabilize as well. Average selling prices for condos increased almost 2%, and average selling prices for multi-family properties increased 6%. Average selling prices for single-family homes dropped just 1.8%, and average selling prices for all three types of homes stayed about the same compared to the first 6 months of 2011.

According to data provided by the MLS Property Network, sales of foreclosed homes for the first 6 months are up compared to the same period in 2011.There were 3,066 foreclosure sales in Massachusetts in 2011. This year, there were 3,486 foreclosure sales, an increase of almost 14%. The so-called “shadow inventory” of houses—those in foreclosure or at risk for foreclosure—have been sold, meaning they are no longer on the banks’ books and are now occupied by new homeowners. McGeough Lamacchia Realty says a reduction in shadow inventory helps stabilize prices and reduce uncertainty.

The increased home sales, competition for homes, stabilization of selling prices, and clearing of shadow inventory are definite signs of recovery in the housing market.
McGeough Lamacchia Realty expects this trend continue for the rest of the year.

About McGeough Lamacchia Realty

McGeough Lamacchia Realty is the number one Real Estate Agency in Massachusetts and named one of the Top 100 Real Estate Teams by the Wall Street Journal Real Trends in 2011. They are a full service real estate agency serving home buyers and sellers Massachusetts and New Hampshire.

http://www.mlrealtyne.com

Sources:

McGeough Lamacchia Housing Report, Copyright ©2012 The Warren Group. All Rights Reserved.

Massachusetts Foreclosure Sales, 2011 and 2012, MLS Property Information Network.

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