Boston’s home prices flatten, year-to-year
Massachusetts home prices remained flat in May as sales of both single-family homes and condominiums continued to fall, according to a new Warren Group report.
The median single-family sale price declined just 0.2% to $589,000 in May, down from $590,000 in May 2022, the second month in a row median single-family home prices declined year-over-year. Last month, 3,611 single-family homes sold in the Bay State, down 25.1% from 4,818 in May of 2022.
Cassidy Norton, associate publisher and media relations director of The Warren Group said those 3,611 recorded sales and 25.1% drop in year-over-year figures shows the single-family market continues to exhibit trends seen in recent months.
“The big differentiator in May is that the median single-family home price declined for the second straight month on a year-over-year basis,” Norton said. “With elevated interest rates, it’s even more expensive for buyers to purchase homes, and price trends are reflecting that.”
Since January, 13,701 homes sold, down 25.6% from the first five months of 2022. During the same period, the median single-family home price rose 1.9% to $540,000.
The median condominium sale price increased in May while the number of units sold fell. Last month condo sales fell 23.7% to 1,843 condos sold compared to 2,414 last May. Meanwhile, the median sale price increased slightly by 0.2% to $526,000 in May.
“The Massachusetts condo market has not been immune to the imbalance in supply and demand,” Norton said. “Amidst this dynamic environment, one might think that opportunity is knocking for sellers. However, with such limited supply, it’s a question of where sellers will go after they list their condos.”
So far this year, 7,060 condos sold across the state, down 25.8% from 2022, with a median sale price that’s up 3.6% to $500,000.
From the Inman News blog:
The latest Standard & Poor’s/Case-Shiller Metro Home Price Indices, released May 30, shows that home-price increases are nearly nonexistent in Boston …
… Home prices rose 0.1 percent in Boston from March 2005 to March 2006 — the lowest increase among the 10 areas studied.
However, I’m confused. They say “Boston” sales prices, for single-family homes – do they really mean Massachusetts? (Now that I look more closely, the authors say it is the Boston “metropolitan area”, which could mean about a hundred different things.)
So, if you’re a buyer, you’re probably pretty happy – prices are the same as a year ago. Of course, interest rates are up about a point. Argggh!
More importantly, for all of us, why are our prices not increasing as much as in other metropolitan areas? Good thing? Sign of our superior intelligence over other areas of the country (not willing to overpay)?
Contact me to find or to set up an appointment to start your Boston condo buying process.
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Updated: January 2018