GREENFIELD — Franklin County closed out the year with a big jump in home sales.
Closings went up nearly 45 percent in November, from 47 to 68, compared to the same time in 2015.
This is consistent with the 2016 year-to-date figures, which are up 13.7 percent from last year. The county’s pending sales for November and year-to-date are also up, by 58.1 and 19.8 percent, respectively, according to the Massachusetts Association of Realtors. Franklin County’s real estate statistics are a microcosm of the Pioneer Valley and the state overall.
According to the state association, pending sales and closing sales are up throughout the valley, and buyers throughout Massachusetts were gobbling up real estate, with a nearly 20 percent spike in closings statewide in November compared to the same time in 2015. November sales and median prices for single-family homes in the state reached their highest levels since 2004. Median prices increased 6 percent, from $344,500 in November 2015 to $365,000 to November 2016, though Franklin County’s November median prices decreased 2.2 percent from $181,000 in 2015 to $177,000 in 2016.
Realtor Corinne Fitzgerald of Fitzgerald Real Estate in Greenfield is the association’s immediate past president and said elections often influence the market, based on citizens’ fear or optimism about the outcome. She said the industry thrived in 2016 and she is enthusiastic about what 2017 will bring.
“This is the term I would use for this year: a perfect storm,” she said, “because all the numbers that need to be up are up and all the numbers that need to be down are down.”
Fitzgerald, who has worked in real estate for 30 years, said sales and median prices have increased, which she explained is important for a healthy market. She said this is good because it means sellers are getting more money for their homes and buyers can afford more. Pending sales, which she calls the industry’s “crystal ball,” are also up.
There has been a drop in how long homes stay on the market.
“That means houses are selling in a reasonable amount of time,” Fitzgerald said. “It’s lower than we have seen in a very long time.”
She explained in a healthy market, homes are for sale for 90 to 120 days, and the local average is currently 92.
“Some people are concerned about another housing bubble,” she said, referencing the 2008 housing crash that shook the American economy and brought on the Great Recession. “I see nothing indicating that we’re going to see that.
“All of our economists in real estate have been giving positive reports going into 2017,” she continued. “We’re hearing that the interest rates will adjust a little, but they’re confident the adjustment won’t impact the market significantly enough to cause any kind of issues. There’s nothing on the horizon that says we’re going to see any major changes.”
Sara Lyman, a real estate broker who owns Hometown Realtors in Athol, said Orange has historically had the healthiest real estate market out of the nine North Quabbin towns, but that changed last year. She said she expects Athol to continue to have the strongest market, citing the town’s investment in its library, new elementary school and the North Quabbin Commons business plaza as a huge draw for homebuyers.
Lyman, who has worked in real estate for more than 16 years, said Athol homes sell more quickly and at much higher prices than other nearby towns.
You can reach Domenic Poli at: dpoli@recorder.com
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