When it comes to market indicators, The Attias Group Real Estate believes that the most popular market indicator is home prices. However, prices are what we call a lagging indicator since they reflect closed sales. The Attias Group recommends watching closing price activity, days on market and months’ supply of inventory to see how sellers might be regaining their pricing power. Upon careful case study The Attias Group Real Estate concludes that favorable supply and demand trends may be fading away from the buyer on a macro level. Price is only one of the crucial indicators in today’s market, and for this analysis we reviewed several other core metrics.
New listings: From April 2011 to April 2012, new listings in the state of Massachusetts were down 6.4% for detached homes and 10.7% for condominiums. Closed sales increased 18.3% for detached homes and 10.2% for condominiums.
Median Sales Price: The Median Sales Price was up 2.7% for single-family properties and 3.0% for condominiums for the same time period. Months’ Supply of Inventory decreased 15.0% for single-family units and 23.1% for town house-condo units.
When speculating residential real estate activity, The Attias Group Real Estate stresses the importance of keeping an eye on the overall economy and job growth. Preliminary Q1-2012 GDP growth came in at 2.2%, which, while upsetting to some and slower than Q4-2011, we still have hope for the future of economic growth. We have also observed expedited bank processing and some easing of lending standards, facilitating increased closing activity.
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