What Should We Expect in the 2013 Real Estate Market?

The real estate market seems to be strengthening, and it's starting to show locally.

Single-family home sales in Massachusetts rose 38 percent in November, according to a recent report by Banker & Tradesman publisher The Warren Group. This was the largest year-over-year percentage increase of 2012 and continued 11 consecutive month of gains, and marked the best November for sales since 2005.

Prices are rising as well. According to The Warren Group's report, the median price of single-family homes in Massachusetts rose almost 2 percent from $270,000 in November 2011 to $275,000 in November 2012.

“We’re winding down a pretty strong year of real estate in Massachusetts. It looks like sales will be the highest since 2006," said The Warren Group CEO Timothy M. Warren Jr. “We’re also seeing median prices start to creep up, another positive sign of a healthy market recovery."

What does this mean for 2013, and specifically the North Andover area?

"I am cautiously optimistic for 2013," said Rosemary Draper of Draper Real Estate. "Draper Real Estate has just moved to a larger office in order to expand  and make room for more agents. We had a great 2012 and an uptick in buyer and seller activity the last quarter of 2012. We were showing on New Years day as well!"

Lisa Sevajian of RE/MAX Partners said local market activity indicates a trend upward as well.

"North Andover has less inventory than we have had in a very long time," Sevajian said. "The amount of time it takes to sell a single family home in town is shrinking and the prices have stabilized. Many homes are selling with multiple offers when priced correctly."

The condominium market is still struggling, Sevajian added, because so many  developments were hit with short sales and foreclosures.

"As we move into the spring market in North Andover, we can expect to see a sense of normalcy return as many buyers are ready and waiting for new property to hit the market," Sevajian said. "February will be a month that sets the tone for the next 3-to-6 months. If we see the typical increase in inventory during the month of February the buyers searching for homes in town will feel the pressure of buying during a sellers market. If we see an above average amount of inventory come on as I am expecting buyers may regain some of the control in negotiations. I am anxious to see what happens over the next eight weeks."