REAL ESTATE TOPICS...Real Estate: High demand for houses, low supply sparks bidding wars for homes

By Jim Kinney

SPRINGFIELD -- Home buyers energized by an early spring and frustrated by their choices of available homes in hot neighborhoods are putting in multiple offers and sparking bidding wars when the right house shows up on the market, according to local real estate agents.

"Properties are coming on the market and they are going very quickly," said Lou Mayo, president of the Realtor Association of Pioneer Valley, which released its monthly statistical rundown of the housing market Monday. "We have the buyers, we need the listings."

Single-family sales are up 38.2 percent across the Pioneer Valley, from 280 homes sold a year ago in March 2015 to 387 sold last month. The region-wide median price is up 2.7 percent from $180,000 in March 2015 to $184,900 last month.

Realtors harvest their statistics on sales that go through the Multiple Listings Service through a real estate agent.

Mayo said he's seeing bidding wars in Agawam, including Feeding Hills, as well as when mid- to high-priced homes come on the market in Wilbraham. Sellers are able to get above the asking price.

"It is happening extremely frequently," said Dawn Henry of Coldwell Banker in East Longmeadow. "And they are entry-level homes. They are under $200,000."

One home in East Longmeadow received eight offers in 24 hours. She's also seen multiple offers come in for homes in Longmeadow and in Springfield.

But Mayo said it is simply demand speaking in a market that didn't slow down as much for this mild winter has it did in past winters when buyers spent months waiting for snow to melt so they could get a look at the back yard of a place they were considering.

"(Realtors are seeing) Very well qualified buyers just looking for a home," Mayo said. "They have already looked at everything else that is out there and said no. They are ready to jump as soon as something pops that they like."

Mayo said one problem is that there isn't the historical data to back up the new, higher prices, so appraisers who set prices used as guides by  mortgage lenders are sometimes reluctant to OK the higher loans.

Real estate agents compare statistics to those form a year ago in order to correct for seasonal changes in buying patterns.

County-by-county statistics:

• Hampden County: Sales are up 44.8 percent from 192 homes sold in March 2015 to 278 sold last month. Median price is up 3.9 percent from $163,950 in March 2015 to $170,400 last month.
• Hampshire County: Sales increased from 58 in March 2015 to 74 last month. The median sales price is up 4.4 percent from $250,000 to $261,100.
• Franklin County: Sales are up from 32 in March 2015 to 34 last month. The median sales price is up 8.5 percent from $178,500 in March 2015 to $193,750 in March 2016.

Other statistics:

• Inventory: Single-family home listings fell 14 percent from 2,271 in March 2015 to 1,925 last month.
• Days on market: The average days on market fell 3 percent from 149 at the end of March 2015 to 144 days  at the end of last month.
• Pending sales: Listings under agreement are up 55 percent from 411 in March 2015 to 637 last month.
• Mortgage rates: A 30-year fixed-rate mortgage averaged 3.71 percent at the end of March. That is compared with 3.69 percent a year ago.

Accords Massachusetts, M Arch saw a record number of closings, the Massachusetts Association or Realtors said. Closing crew 23.2 percent from 2,801 statewide in March 2015 to 3,452

Closed sales have been up 14 out of the last 21 months, the state association said.

Nationally, total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, jumped 5.1 percent to a seasonally adjusted annual rate of 5.33 million in March, according to the National Association of Realtors. That is compared with an annualized rate of 5.07 million in February.

Sales rose in all four major regions last month and are up a modest 1.5 percent from March 2015.

Lawrence Yun, NAR chief economist, said home sales across the country rebounded in March from a soft February.

"Closings came back in force last month as a greater number of buyers – mostly in the Northeast and Midwest overcame depressed inventory levels and steady price growth to close on a home. Buyer demand remains sturdy in most areas this spring and the mid-priced market is doing quite well. However, sales are softer both at the very low and very high ends of the market because of supply limitations and affordability pressures."