The Central Massachusetts housing market has been rising more sharply since the end of the summer. The Massachusetts Association of Reactors (MAR) is confident that the market continues. Their recent report indicates sales may continue to rise through the summer.
Sales Grow Consistently for 2 Straight Years
The MAR reports that housing sales have risen for 30 of the past 31 months. This is one of the most consistent trends throughout the country. According to the September report, year-over-year pending housing sales rose 35.9%. Condominium sales increased nearly 17% over the same time period.
Housing prices are also rising, but not nearly to the same degree. The MAR found that the average price of single family homes increased by 5.1% between September 2014 and September 2015. Condominium prices were unchanged, despite the spike in sales.
One of the most surprising parts of the trend is that it has continued into the fall. The market usually cools with the weather, but this data appears to indicate that momentum will last through the winter.
Shrewsbury Market Expected to Perform Better than Others
The Shrewsbury housing market appears to be among the strongest in the state. The markets in other areas such as Pioneer Valley market are also rising, but agents warn that the existing housing supply is insufficient to meet demand.
One of the reasons that the city is faring well is that the local population is small, so the city doesn’t face the same shortages that Boston, Worcester and other large cities must contend with. Rep. David Rogers has introduced a bill to try to correct some of these problems.
“Another problem is, we don’t have a lot of open space left,” Rogers told Wicked Local. “Generally I salute the idea that we need more housing, housing of all ranges, that’s affordable, certainly, but there is a tension here.”
While housing shortages could be a concern in Shrewsbury at some point as well, few buyers report having difficulty finding available units. According to Zillow, the city has over 170 listings.
Demand for single family homes appears to be the strongest. This trend is driven primarily by the rising number of young adults that are moving to the Shrewsbury region to find a place to live. Many of them want to avoid the Boston market, which reflects a changing dynamic in the lifestyle preferences of people in that age group. Shrewsbury could become a younger community as more millennials purchase homes.