Franklin County home sales grew by 13.2 percent in 2016 from what they were in 2015, more than twice the 6.5 increase the previous year, with prices close to what they were before the 2008 recession.
Franklin County’s sales growth was more than twice Hampshire County’s 5.3 increase in 2016 sales over 2015.
The year-end report from Realtor Association of the Pioneer Valley also shows nearly an 18 percent increase in pending sales for 2016 over 2015.
Most significantly, there was a 7.8 percent rise in median prices to $199,500 — the highest level they have been at since before the recession in 2008, when Franklin County’s median sales price was at $200,000. The $199,500 median price also topped the $199,000 median for Pioneer Valley overall, as growth in Hampshire and Hampden counties remained relatively flat.
“It’s nice to see it coming back to a sustainable number,” said Richard Sawicki of Erving, RAPV president, admitting, “It’s taken a while to get back to those prices.”
Sawicki, of Sawicki Real Estate in Amherst, said that the main challenge in home sales is that there’s been a low inventory of entry-level homes, which he thinks may begin to turn as homeowners who bought before the recession see prices return to what they bought their homes for.
With the Federal Reserve Board now raising the prime interest rate, and the prospect of mortgage rates climbing from an extended period of historic lows, Sawicki said, there may also be added impetus for buyers to jump into the market.
There was a 4.5-month inventory of homes on the market in December, compared to 7.2 months in December 2015, Sawicki said, noting that a six-month inventory is typically the dividing line between a buyer’s market for anything below and a seller’s market for anything above.
The number of new listings dropped 6.3 percent in 2016, from 8,545 to 8,009 in Franklin County.
Single-family homes also sold more quickly in Franklin County last year, with days on the market prior to sale dropping 5.8 percent to 149 days, 45 days longer than for the Pioneer Valley overall.
Condominium sales in Franklin County showed a 3.2 percent increase in 2016 over the previous year, with the median sales price declining nearly 2 percent, to $152,000.
You can reach Richie Davis at:
rdavis@recorder.com
or 413-772-0261, ext. 269