Even without noting that Massachusetts is in the middle of the worst pandemic in 100 years, the pace of home sales has been nothing short of remarkable. Could it be possible that home sales will beat last year’s tallies?
As of Oct. 31, the state was a mere 329 single-family home sales behind last year’s total of 49,569, according to The Warren Group, publisher of Banker & Tradesman, despite two months of record low sales totals this spring when the state was largely holed up at home.
And despite some relative softness in the condominium market – it’s still a seller’s market in many areas, after all, just not as much as it has been in prior years – the state is just shy of 2 percent below last year’s total of 70,094 condos and single-family homes sold through Oct. 31, 2019.
The main driver has been an explosion of closings in September and October, with a small assist from closings in prior months. These, of course, represent houses and condos that went under agreement in the heady days of July and August, when we thought we had the coronavirus on the run and mortgage interest rates were breaking record lows by the week.
Typically, the holiday season is a slow one for home sales as buyers retreat from the increasingly cold weather as fall drags on, as they re-up their leases and as they busy themselves with holiday plans. But there are signs Massachusetts just might buck that trend this year thanks to continuing low interest rates and indications that demand for homes has by no means been satiated.
First, pending sales have been up significantly in both September and October on a year-over-year basis, according to the Massachusetts Association of Realtors, suggesting a strong finish for the year as those sales are finalized and close in November and December. And, in addition to anecdotes from real estate agents who have spoken to Banker & Tradesman, the continuation of strong pending sales figures suggests buyers’ appetite still hasn’t been satisfied.
Second, the number of new single-family and condo listings that entered the market in October is actually up slightly year-over-year, suggesting that sellers are managing to keep pace with demand by finding trade-up homes or acceptable downsizing options.
Third, innovations in how we buy and sell homes have largely insulated the industry from COVID-19 risks. The industry has successfully pivoted to making most aspects of the transaction as digital as possible, removing nearly all risk of disease transmission from homebuying. And let’s not forget the real estate industry’s admirable coup this spring in getting itself designated as an “essential” industry by the Baker administration, immune from new shutdowns.
Agents, lawyers, appraisers, home inspectors and lenders have all done an amazing job not just keeping the wheels of the market turning but keeping up with unprecedented demand. For this, we should all be grateful.
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