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July Sales Data: Our Perspective

As part of Shanahan Real Estate Group's continuing effort to interpret recent market data for our local area, Felicity Tuttle provides the following insight: According to the Greater Boston Real Estate Board's online letter "On the Home Front," the news is that the sales of homes this June was lower than last year. This is not surprising when we remember that last year's federal tax credit boosted June 2010 sales over the June sales of the four previous years, thus our June 2011 numbers are still strong. It is also not surprising that, due to the absence of the tax credit, year-to-date sales of single family homes and condominiums is lower this year than last. Solidly good news from GBREB is that "pending sales of detached homes and condos rose for a second consecutive month over year-ago levels,an indication that the slowly improving job market in Gr. Boston, combined with stronger home price affordability and steady financial gains on Wall Street have provided an increasing number of home buyers with the confidence to move forward with a home purchase. In the detached single-family home market, pending sales jumped 19 percent over last June, making it the largest annual increase in monthly pending home sales since April 2010, when pending sales rose 29 percent." Again, this increase is particularly significant because the June sales last year "hit a five-year high as consumers rushed to beat the expiration of the federal home buyer tax credit." Better pending numbers this June in spite of the absence of any external incentive is a very positive sign. One factor GBREB noted as influencing this trend is the "improving job market in Gr. Boston," data which, if it continues, should bring more buyers "off the fence." I would suggest that several other factors have also been positive influences: the continued good interest rates by themselves have not been sufficiently helpful to stimulate the market, but the interest rates coupled with the fairly level and realistic pricing, (e.g. reduction in housing market volatility) together have provided more buyer impetus to put homes under agreement. Buyers are doing their own research, consulting with their agents for more data, and moving forward with caution but conviction. All of this is good news. To learn more about Felicity or her career in real estate, see her agent page.