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Lack of housing inventory is getting ridiculous in Boston

Boston condos

Boston condos

Boston Massachusetts Condos

The Massachusetts Association of Realtors has released its May housing numbers.

And you guessed it: Sales down again last month in Massachusetts (by 9 percent for single-family homes and 1.1 percent for condos) while prices continue to soar ($347,900 median price for single families, up 7 percent; $316,000 for condos, up 9 percent).

The main culprit: Lack of supply.

Total inventory of homes for sale was down by about 8 percent last month while the average days on the market fell to 99 days, down nearly 11 percent. There was a bump up in new listings. MAR president Peter Ruffini says that possibly bodes well for the inventory problems.

But it’s still not nearly enough to meet demand. It’s ridiculous.

When is it going to change?

Update – Scott seems to agree with Peter that the listings increase could be good news if it’s sustained. … We’ll see. The increase, however, merely takes us back to a level that was already too low. We need a bunch of months of increased listings to put a dent in the inventory problem. Again, we’ll see.

File under: Inventory blues

One Response to Lack of housing inventory is getting ridiculous in Boston

  • Though inventory being down is really dragging down the market, the real killer is mortgage rates. Real estate agents need to start considering ways to negate the effects that rising rates are having not only on home affordability, but also on sellers reluctance to list their home due to the fear that they will not be able to qualify/afford a new mortgage. Assumable mortgages (commonly FHA and VA loans) can greatly help combat all of these issues, as a seller can list his assumable mortgage, giving a buyer a better rate than currently available and lower monthly payments, and in turn a seller could look for an assumable mortgage, keeping their new home affordable. There are some great resources out there on assumable mortgages these days like the FHA and VA sites themselves, and there is even a listing site out there, http://www.zumption.com, which deals specifically with assumable mortgages and gives the buyer/seller information such as how much they could save every month vs a new loan, and the ability to find listed homes with assumable mortgages in their area.