RE/MAX of New England Forecasts Millennial Buyers are Expected to Fuel the 2015 Housing Market
Loosening Lending Practices, Low Inventory and Steady Interest Rates Anticipated to Heat-up the First Half of the Year
Natick, MA – January 20, 2015 – According to the RE/MAX of New England 2015 Housing Forecast, millennial buyers are expected to play a significant role in the 2015 housing market across the region, and New England will continue to experience inventory shortages in desirable areas, while consumers should expect to see higher interest rates in the second half of the year.
RE/MAX of New England cites the convergence of increased consumer confidence, a rebounding local economy and continued low-interest rates to create a steady, consistent housing market throughout much of New England in 2014. Inventory shortages in desirable areas drove prices up, but throughout much of the region, overall home sales decreased over 2013 numbers.
The first quarter of 2014 saw lower-than-anticipated sales throughout New England, but as interest rates and oil prices ticked down, and the weather heated up, pending sales throughout the region hit double-digit increases year-over-year. Price increases coupled with inventory shortages helped to motivate buyers from the sidelines resulting in a busy spring and summer market. Investors took a backseat in 2014, as fewer distressed or under-valued properties entered the market.
According to the report, single-family and condominium home transactions were steady throughout New England in 2014, creating a very similar market to what was experienced in 2013.
In Connecticut, sales were similar to the 2013 market, with approximately 40 fewer homes sold in 2014 according to CTMLS and CMLS data. The average median price of a single-family home was $190,000, condominium sales rose 3.2%, and the average median price of a condo was $78,700, according to CTMLS data.
In the Greater Fairfield County area, single-family home sales decreased 5.9% while condominium sales rose 1.5%. The average median price of a single-family home in Greater Fairfield County was $400,000.
The average median sales price of a single-family home in Massachusetts increased 3.8% from $320,000 to $332,000 in 2014, according to MLSPIN. Single-family home sales decreased 3.0% and condominium transactions decreased 0.6% year-over-year.
At $227,900, the average median sales price of a single-family home in New Hampshire was up 3.6% over 2013 figures. Single-family home transactions decreased 1.6% year-over-year according to NNEREN, while condominium transactions decreased 0.5% and prices increased 4.3%.
In Rhode Island, single-family home sales decreased 1.3% year-over-year. Condominium sales decreased 7.0%. Average median price for single-family homes increased 3.8% compared to 2013, reaching $218,000.
Single-family home transactions were flat in Vermont, while the median price decreased 3.8%. Condominium transactions rose 9.5% with the average median price rising 3.3%.
“Across New England we experienced extremely moderate price increases,” said Breault. “Single-family homes increased 0.8% on average, while condominiums fared better, rising 2.7% over last year’s prices. This is the type of appreciation we expect to see in a healthy market and helps set the stage for what we can expect to see in 2015.”
To read the entire RE/MAX of New England 2015 Housing Forecast, click here.