NATICK, Mass.--(BUSINESS WIRE)--
According to the RE/MAX of New England 2014 Housing Forecast, New England will continue to experience a significant shortage of inventory and consumers should expect to see higher interest rates as we head into the second half of the year. To read the entire RE/MAX of New England 2014 Housing Forecast, visit www.remax-newengland.com.
RE/MAX of New England cites low interest rates and rising consumer confidence in propelling the New England housing market into solid recovery throughout 2013. An ebbing supply of inventory coupled with low interest rates and pent-up demand fueled the market and drove-up pricing throughout the region.
According to the report, single-family, condominium and multi-family home transactions were strong throughout New England in 2013. With the exception of Vermont, which experienced a -3.3% decline in multi-family home sales, each state experienced growth in all three categories of transactions.
In Connecticut, single-family sales increased 10.1% year-over-year; condominium sales rose 15.1% and multi-family homes rose 5.3% according to CTMLS data. A closer look at Fairfield County is included in the report.
The average median sales price of a single-family home in Massachusetts increased 8.8% to $313,109 in 2013. Single-family home sales increased 8.8%; condominium transactions increased 11.9% year-over-year, and multi-family home sales grew 4.2%.
The average median sales price of a single-family home in New Hampshire was up 6.9% over 2012. Single-family home transactions increased 10.9% year-over-year; condominium transactions grew 17.8% and multi-family home transactions were up 2.9%.
In Rhode Island, single-family home sales were up 10.7% year-over-year. Condominium sales increased 32.5%, and multi-family home sales grew 2.1%. Average median price for single-family homes increased 7.4% compared to 2012.
Single-family home transactions increased 14.6% in Vermont, the largest jump in sales in New England in 2013, while the median price increased 3.7%. Condominium transactions rose 15.2%; multi-family home transactions were down -3.3%, while pricing on these units climbed 19.2%.
“The significant improvement in median price we saw in most market segments across the region is the result of reduced inventory,” said Dan Breault, Executive Vice President and Regional Director of RE/MAX of New England. “While interest rates did rise upwards of one point over the summer of 2013, it did not dissuade buyers from moving forward. In fact, it appeared to have the opposite effect of creating competition and driving prices up in key markets.”
Strong home sales during 2013, especially in the second half of the year, bode well for the 2014 housing market. “The traditionally slower fall and winter months showed very strong activity in key markets across the region,” continued Dan Breault. “This is an excellent bellwether of how we can expect the first quarter of 2014 to shape up.”
Lisa Doucet-Albert, 401-351-8855