Home/Mortgages/February Home Purchase Contracts Surge in Massachusetts

March 14, 2012 (Shirley Allen)

Contract signings to purchase single-family homes and condominiums in Massachusetts were up again in February, the tenth consecutive month that contract signings have exceeded the previous year’s totals according to the Massachusetts Association of REALTORS® (MAR).

An estimated total of 4,645 purchase contracts for existing single-family homes and condos were signed in the Bay State in February. That was 25.8 percent higher than the 3,692 contracts signed in January and 41.7 percent higher than the 3,279 contracts signed in February 2011.

Signings for single-family homes accounted for an estimated 3,368 of the purchase contracts in February, up 44.2 percent from the 2,335 contract signings in February of last year.

It was also 18.3 percent higher than last month when 2,846 single-family home purchase contracts were signed.

Contract signings to purchase condominiums were also up from last year, increasing from 944 signings in February of 2011 to an estimated 1,277 in 2012.

Purchase contracts were up 11.6 percent from last month when 846 condominium contracts were signed.

Trisha McCarthy, president of MAR, stated, “This was the largest year-over-year increase in pending sales since we’ve been tracking this data. Buyer confidence continues to grow and the numbers confirm what REALTOR®-members across the state have been reporting; they’re busy. If these pending sales hold together through closing, we have the potential for impressive increases in April and May closings.”

Year-over-year, purchase contracts for single family homes and condominiums have increased for the last 10 consecutive months and it was the second consecutive monthly increase for both single-family home and condominium purchase contracts.

Contract signings are a forward looking indicator which generally indicates closings one to two months in the future.

Tags: existing homes, condos, sales, median home prices, Massachusetts, contract signings, pending home sales