Supply of homes for sale in MA remains tight
As the spring 2014 home selling season nears, the inventory of homes for sale in Massachusetts is stubbornly stuck at extremely low levels. According to data maintained by MLS-PIN, there was only a 3.5 month supply of home for sale throughout Massachusetts in February. That’s about half of the 6 to 8 month supply needed for a market in balance and almost so low as to be functionally inadequate.
It gets much worse in many towns along the southern portion of the I-495 corridor, where 1 or 2 months of supply have become the new normal. The Towns of Norfolk (with 7.8 months of inventory) and Grafton (with a 4.9 month supply of homes) are a couple of communities in the greater I-495 region where there are more generous supplies of homes for sale. That’s due largely to significant new construction in those towns; substantial new home inventories are almost non-existent in most towns up and down I-495.
Upwards pressure on home prices
The lack of supply is putting upwards pressure on home prices. The median sales price of all single family homes sold on MLS-PIN rose 10% in 2013.
Based on overwhelming attendance at local open houses this February, we may be seeing stiff price appreciation this spring unless a lot more homes hit the market soon.
Keep checking back to 02038.com for updates as the spring 2014 housing market unfolds!
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