Inventory shortages continue to make the homebuying market competitive as supply is unable to keep up with demand.
Median home sale prices in February rose more than 14% from last year, the largest increase since July 2013, according to a new Redfin report.
The report found 36% of homes sold last month went for above the asking price. At the same time, median home sale prices, nationally, rose 14.4% year over year to $336,200 in February.
The median sale price of a home in Boston was $550,000, a 1.3% decrease month over month and an 11.1% increase over last year. In February, 2,497 homes sold in the Boston area, up 5.4% from last year.
A decline in homes for sale hit a record low in February. While both closings and pending sales increased from last year, 5% and 21%, respectively, a decline in homes for sale hit a record low last month, as they fell by 16% — the second-largest decline since 2012. New Boston listings fell 14.9% from last year.
Time on the market also dropped last month as the report found a typical home sold in February went under contract in 32 days — 23 fewer than last year.
“This is the strongest seller’s market since at least 2006,” Redfin Chief Economist Daryl Fairweather said in a press release. “Buyers outnumber sellers by such a huge margin that many homeowners are staying put because they know how hard it would be to find a place to move to.
Boston Condo Inventory and the Corona Vaccine. Some say that more Boston condo for sale inventory will arrive on the market in the coming months as the vaccination campaign gathers momentum. The thought by some Boston downtown real estate brokers is that many would-be home sellers are delaying selling their homes until the pandemic recedes.
“As the risk of serious illness declines, because more people are vaccinated, we expect to see more sellers.
That would be welcome news for homebuyers who are finding limited choices. Last week, it was reported that housing inventories hit an all-time low in December as buyer demand continued to be elevated.
Experts say that as the pandemic fades away we could also see cities regain some of their lost residents. Populations in several big cities decreased during the pandemic as people moved to the suburbs or rural areas, where more space is available.
The bottom line, according to the experts, the suburbs will remain popular with buyers that want more space for less money.
Single-family homes in the suburbs will clearly be favored over the condominiums in downtown, city centers,” said Lawrence Yun, chief economist of the National Association of Realtors.