Pioneer Valley single-family home sales and median home prices rose in July Reply

The Pioneer Valley real estate market continues to improve. Call Michael Seward at 413-531-7129 if you plan on buying or selling a home in the Pioneer Valley

The Pioneer Valley real estate market continues to improve. Call Michael Seward at 413-531-7129 if you plan on buying or selling a home in the Pioneer Valley

Pioneer Valley single-family home sales and single-family median prices were up in July, according to data released by the REALTOR® Association of Pioneer Valley (RAPV).  Sales increased 17.7% and median prices increased 8.9% when compared to the same period last year.

The total number of Pioneer Valley single-family homes that sold in July rose to 505 from 429 single-family homes sold during the same period last year, while the same year-over-year comparison of median single-family home prices rose to $207,000 from $190,000.

Although Hampshire County saw the largest increase in the number of sales among the three counties that make up the Pioneer Valley, it was also the only county that saw a slight decrease in median prices.

Here is the data by county:

County

Sales Change

Median Price Change

Closed Units

Franklin

Up 12.8%

Up 16.2%

53

Hampden

Up 17.7%

Up 1.1%

319

Hampshire

Up 19.8%

Down 1.9%

133

Franklin County saw a 12.8% increase in the number of sales, from 47 units sold during July of last year to 54 units sold during the same period this year.  July median single-family home prices rose from $185,000 in 2012 to $215,000 in 2013.

July Hampden County single-family homes rose from 271 units in 2012 to 319 units in 2013 for a 17.7% increase, while median single-family home prices rose from $193,101 to $211,656.

Hampshire County homes rose to 133 closed units in July from 111 closed units during the same period last year, for a 19.8% increase.  However, year-over-year July median home prices dipped slightly from $265,000 to $260,000.

Citing data from FreddieMac.com, RAPV reported that interest rates for a 30-year-fixed rate mortgage rose nearly a point in the week ending July 25 when compared to the same period last year, from 3.49% with an average of .7 points to 4.31% with an average of .8 points.    Interest rates started to rise at a faster pace in May on news from the FED that they planned to scale back their quantitative easing, prompting home buyers to get off the fence while interest rates were still at historic lows.  However, even at their current rates, interest rates are still at historic lows.

Another factor influencing sales and median prices continues to be a lack of homes available for sale.  According to RAPV, inventory was down in July 10% when compared to the same period last year, from 3,159 to 2,844.

The number of days a single-family home was on the market in July was down 28% when compared to the same period last year, from 132 days to 95 days.   However, this is likely due to the fact that Multiple Listing Service Property Information Network (MLS PIN) eliminated their flagged Active status.   Prior to the elimination of the flagged Active status, real estate agents would simply flag a listing rather than changing the status to “under agreement” when they had an accepted offer on a property.  This artificially increased the number of days on market data.

If you are planning on buying or selling a home in the Pioneer Valley, make your first call to Michael Seward at 413-531-7129.

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