According to a new report from The Warren Group, February single-family home sales in Massachusetts jumped 8.4 percent compared to a year earlier, marking the third consecutive month of year-over-year increases in prices. The median price for a single-family home jumped from $249,000 in February 2009 to $269,950 in 2010. In addition, the year-to-date median home price is up 9.8 percent. February condominium sales increased as well, marking the sixth consecutive month of year-over-year gains.There were 939 condo sales in February, up 8.9 percent from 862 the prior year. Year-to-date condo sales surged 15.7 percent to 1,931 from 1,669 last year.
It is easy to conclude that the Boston real estate market is improving. That said, it is important to note the reasons behind the upswing. The homebuyer tax credits are certainly giving some buyers and extra push to get their offers in by the end of April, and interest rates have been kept artificially low thanks to Uncle Sam. It will be interesting to see if prices and sales continue to increase in the summer months. Buyer confidence is improving, which is a solid improvement. Boston homebuyers who had been sitting on the fence for a few years have finally decided to put pen to paper. They are, however, purchasing homes with a longer time-frame in mind. Homebuyers who only a few years ago would have considered purchasing a studio in the Back Bay are now looking for a home they can live in for five or even seven years….just in case they need to stay longer than intended because of market fluctuations.