Saying that Boston is back in the real estate game is such an understatement these days. This is especially true, as the Bay state real estate market saw record home sales again in May, nearly hitting a ninety percent increase compared to the same period last year. Sales of properties almost doubled as the number of pending homes under agreement climb to 9,075 from previous year's 4,944. This is the first time since 2004 that the Bay state breached the 9,000 mark, with all transactions having submitted purchase and sales agreements.
As with real estate market trends, pending sales have historically been used to predict actual home sales in the summer months, when the real estate market - both in Boston and in other key cities, has traditionally been the peak of sales and turnovers. Aside from the record sale of single-family homes, the condominium sector also hit an all-time high, increasing 63 percent compared to last year - a feat that the city hasn't been seen ever before.
One reason for the record-breaking sales is that people are afraid of the onslaught of the summer selling season, with property prices continually increasing. Investors are looking to buy-in before they're completely out of their price range, as well as the selection and inventory continue to drop. Mortgages rates are also climbing, so investors are seeing the likelihood of acquisition in the near future dimming. Median prices for homes in Massachusetts rose nearly 14 percent in April to $313,000, up from the $275,000 only a year ago.
Though these figures represent "pending sales", these transactions provide information about where the real estate market is heading in next 90 days. A pending sale or a sale "under agreement" is when the buyer and seller agree on the terms of the sale of a home and have a signed purchase and sale agreement, but have yet to close at the Registry of Deeds.
Alongside this positive property news, another surprising transaction came to light earlier this week, as two tandem parking spots in the Back Bay area sold for $560,000. Originally listed and acquired for $42,000, the two parking slots are in the heart of the city, by Newbury Street and Commonwealth Avenue. This transaction breaks the current record for parking spot sale, which was previously pegged at $250,000. parking spot was located in .