2013 Closed Out with Year-over-year Growth across New England as Rising Consumer Confidence and Low Interest Rates Fueled the Market
Natick, MA – January 7, 2014 – 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 in2013. 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. This is reflective of a larger trend throughout the northeast and nation, where single-family home sales in the region are up 9.9% on average according to MLS data.
In Connecticut, where the average median price of a single-family home was $216,105, sales increased 10.1% year-over-year. Condominium sales rose 15.1%, and multi-family homes rose 5.3% according to CTMLS data. In Fairfield County, the news was even more positive. Single-family home sales increased 18.4%; condominium sales rose 30.2% and multi-family homes were up 5.4% over 2012 numbers. The average median price of a single-family home in Fairfield County was $390,955 in 2013.
The average median sales price of a single-family home in Massachusetts increased 8.8% from $287,841 to $313,109 in 2013. Home transactions in all three categories all surged ahead. Single-family home sales increased 8.8% and condominium transactions increased 11.9% year-over-year, while multi-family home sales grew 4.2%.
At $215,655, the average median sales price of a single-family home in New Hampshire was up 6.9% over 2012 figures. Single-family home transactions increased 10.9% year-over-year, while condominium transactions grew 17.8%. Multi-family home transactions were up 2.9%.
Rhode Island experienced significant growth in 2013. Single-family home sales posted solid gains in 2013, 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, reaching $206,870.
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% with the average median price rising 2.6%. Multi-family home transactions were down -3.3% while pricing on these units climbed 19.2% to $207,768.
“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.”
To read the entire RE/MAX of New England 2014 Housing Forecast, visit www.remax-newengland.com.
About RE/MAX of New England and Integra Enterprises
Since its inception in 1985, RE/MAX of New England has grown to over 220 offices and 2,700 sales associates throughout Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont, providing franchised residential and commercial real estate services to its franchisees and their real estate professionals.
Integra Enterprises Corporation is a privately held company headquartered in Toronto, Ontario, Canada. Integra is the largest sub-franchisor of Denver, Colorado based RE/MAX, LLC. Representing approximately 30 percent of RE/MAX worldwide with more than 27,000 agents, Integra operates RE/MAX regional headquarters in Massachusetts; Minnesota; Indiana; Toronto, Ontario, Canada; and Vienna, Austria. Integra’s proven operating model supports its membership with a highly accessible and responsive regional leadership team delivering proprietary business development, training, marketing, and event management services from each of its regional offices.
For more information about Integra Enterprises read the Integra brochure or to read more about RE/MAX of New England visit the RE/MAX of New England blog at www.remax-newengland.com and follow us on Twitter at @REMAXNE. RE/MAX is proud to help raise millions of dollars and support charitable organizations including Susan G. Komen for the Cure and Children’s Miracle Network Hospitals.