Spring market finally kicks in after a snowy winter - but with lower sales than last year
With winter - cross your fingers - mostly behind us, home and condo sales are starting to finally pick up with the start of the spring market.
Pending sales jumped 40 percent from February to March, the largest month-over-month increase since the Massachusetts Association of Realtors began tracking pending sales in 2008. Condo sales were up 45 percent from February.
Blaming the weather for poor sales is typically pretty lame, but this winter provides an exception to the rule.
But don't be fooled by the big month-over-month increase into thinking the market has turned the corner - it hasn't.
The increase in pending sales in March over February is mostly a story about this winter's bad weather - the more telling figure is how this March stacks up with the start of the spring market a year ago.
Pending home sales in March fell more than 16 percent when compared with March 2010, MAR reports. Condo sales plunged 22 percent compared to March 2010.
MAR notes the home buyer tax credit was still in effect last year - I agree this is obviously a big factor in the year-over-year drop in pending sales.
And to be fair, month-over-month numbers have their place when trying to gauge the market's direction. Given how dramatically the home buyer tax credit inflated sales from 2009 on through the spring of 2010, the numbers this spring are bound to be lower.
At some point, it will be worth looking at the month-over-month numbers to get a sense of what direction the market is heading in. For example, it will be worth noting whether the gap with the 2010 numbers widens or narrows as we head deeper into spring.
But given the fluky weather this winter, the big rebound in sales in March over February tells us nothing more than the snow (mostly) stopped.
