The super-low inventory of homes on the market is apparently starting to impact the housing market in Massachusetts.
The Warren Group reports that single-family homes sales were down in February by about 5 percent, to 2,246. Meanwhile, median prices shot up by 12 percent last month compared to a year ago, to $275,000.
Sure, some of the sales decline can be attributed to a particularly strong February last year.
But it ultimately comes down to classic economics: High demand + low supply = higher prices.
Condo sales fared a little better, but not by much. Condo sales last month were up by 1.4 percent and prices increased by about 6 percent, according to the Warren Group.
File under: Reversal of Fortunes