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Statewide home sales reach all-time high

by Stephanie Sims and Natalie Terchek

boston-winter-beacon-hill-homes-houses

Through the end of November, there have been 55,968 home sales in Massachusetts, increasing 0.4 percent from the same time last year and marking an all-time high, according to a new report from The Warren Group.

Meanwhile, the median single-family home price in that time has surged 5.7 percent to $369,000 compared to $349,000 at the end of November 2016.

“Despite decades of data points showing a significant slowdown in real estate transactions during the fall and winter months, the Massachusetts housing marketing continues to perform at an impressive rate,” said Cassidy Murphy, editorial and media relations director of The Warren Group. “As we’ve seen in previous months, the state’s unique dynamic between supply and demand continues to push prices to record highs.”

Local home sales follow nationwide trend

Amid low inventory and soaring sales, home prices around the country continued to increase in October, according to the latest S&P CoreLogic Case-Shiller Indices. Prices were up 6.2 percent over last October and up from 6.1 percent in September.

The Indices‘ National Index, 10-City and 20-City Composites each registered a 0.7 percent month-over-month increase in October, while 11 of 20 cities measured had increases before seasonal adjustments and all 20 cities had increases after seasonal adjustments.

David M. Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices, notes that the rate of increase is three times the rate of inflation, posing challenges for hopeful homebuyers who may not be able to meet the price demands. Economic conditions have been favorable thus far, but he notes that may change in 2018.

“Underlying the rising prices for both new and existing homes are low interest rates, low unemployment and continuing economic growth,” Blitzer said. “Some of these favorable factors may shift in 2018. The Fed is widely expected to raise the Fed funds rate three more times to reach 2 percent by the end of the New Year. Since home prices are rising faster than wages, salaries and inflation, some areas could see potential home buyers compelled to look at renting.”

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