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.
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 percent decline in multi-family home sales, each state experienced growth in all three categories of transactions. This is reflective of a larger trend throughout the northeast and nation, where single-family home sales in the region are up 9.9 percent on average according to MLS data.
New England States High-Level Overview:
Connecticut: In Connecticut, where the average median price of a single-family home was $216,105, sales increased 10.1 percent year-over-year. Condominium sales rose 15.1 percent, and multi-family homes rose 5.3 percent according to CTMLS data. In Fairfield County, the news was even more positive. Single-family home sales increased 18.4 percent; condominium sales rose 30.2 percent and multi-family homes were up 5.4 percent over 2012 numbers. The average median price of a single-family home in Fairfield County was $390,955 in 2013.
Massachusetts: The average median sales price of a single-family home in Massachusetts increased 8.8 percent from $287,841 to $313,109 in 2013. Home transactions in all three categories all surged ahead. Single-family home sales increased 8.8 percent and condominium transactions increased 11.9 percent year-over-year, while multi-family home sales grew 4.2 percent.
New Hampshire: At $215,655, the average median sales price of a single-family home in New Hampshire was up 6.9 percent over 2012 figures. Single-family home transactions increased 10.9 percent year-over-year, while condominium transactions grew 17.8 percent. Multi-family home transactions were up 2.9 percent.
Rhode Island: Rhode Island experienced significant growth in 2013. Single-family home sales posted solid gains in 2013, up 10.7 percent year-over-year. Condominium sales increased 32.5 percent, and multi-family home sales grew 2.1 percent. Average median price for single-family homes increased 7.4 percent compared to 2012, reaching $206,870.
Vermont: Single-family home transactions increased 14.6 percent in Vermont, the largest jump in sales in New England in 2013, while the median price increased 3.7 percent. Condominium transactions rose 15.2 percent with the average median price rising 2.6 percent. Multi-family home transactions were down -3.3 percent while pricing on these units climbed 19.2 percent to $207,768.
The entire RE/MAX of New England 2014 Housing Forecast can be read online at www.remax-newengland.com.
