Local pending home sales hit all-time high in May, Massachusetts Association of Realtors says
More Massachusetts single-family homes were put under agreement in May than in any month since January 2004, the Massachusetts Association of Realtors said Wednesday.
January 2004 was the month that the association began tracking this data. Condominium pending sales also hit their highest point in nine years of tracking, the association said in a press release.
There were 9,075 Bay State single-family homes put under agreement last month, up nearly 84 percent from the number in May 2012. Pending sales for condos was up about 63 percent on a year-to-year comparison basis, with 3,469 units put under agreement last month.
“May was a tipping point as increasing prices and interest rates pushed qualified buyers to make offers that sellers accepted in great numbers,” association president Kimberly Allard-Moccia said in a statement. “However, we still need more homes on the market and hopefully this activity will spark potential sellers to list their homes to help meet the demand.”
The association’s pending sales analysis counts homes that have been put under agreement but are not yet completed sales. Often six weeks can elapse between the time a home is put under agreement and the time that the sale closes. In general, economists look at closed home sales when they seek to evaluate the condition of the market, but those data points can be several weeks old. According to the association, pending sales can sometimes give more of a real-time indication of where the housing market might be heading.Chris Reidy can be reached at firstname.lastname@example.org.