Cambridge Real Estate – Single-family homes

Massachusetts median single-family home price tops $610,000

The median price of a single-family home in Massachusetts has topped $610,000, the first time home prices exceeded $600,000. 

Home prices are far from flattening, according to a new Warren Group report, as they continue to rise, just not as quickly as they had been.

The Warren Group’s June Massachusetts Sales Report found single-family home sales fell 11.5% to 6,182 from 6,987 a year ago.

The median sale price marked an all-time high for single-family home sales, up 9.9% to $610,000, from $555,000 in June 2021. 

Tim Warren, CEO of The Warren Group, said this is the first time the Massachusetts median single-family home price has exceeded the $600,000 mark.

“Keep in mind that it was only 14 months ago when the median price of $500,000 was exceeded for the first time,” Warren said. “I doubt we’ve seen the end of it. Experts keep speculating that with the recent hike in interest rates that prices could plateau in the near future, but I’m not sure we’re at the tipping point just yet. Price increases are moderating this year, but they are far from flatlining. There are just so many buyers and not enough homes to go around. I expect prospective buyers to continue paying significant premiums in the coming months, even as it gets more expensive to borrow money.”

So far this year, 24,553 single-family homes sold in Massachusetts, a 10.5% decrease from a year ago. At the same time, the year-to-date median single-family home price rose 10% to $550,000. 

Condominiums followed similar trends last month with sales falling and prices rising. 

June condominium sales fell 13.8% to 2,748 from 3,189 a year prior.

The median sale price of a condo in the Bay State increased 10.2% to $539,000, the third month in a row that median condo prices have hovered above $500,000, according to the report. 

For the first six months of 2022, 12,264 condos sold in Massachusetts, down 11.6% from a year ago. The median condominium sale price rose 8.5% from the same time period to $499,000. 

“Historically, condos have been a more affordable alternative for homeownership in Massachusetts,” Warren said. “Even though the median sale price of $539,000 is significantly lower than the median single-family home price of $610,000, it’s still prohibitively expensive for many buyers, especially as purchasing power declines due to rising mortgage rates.

real-estate-pain
Per request of one of my blog readers – Cambridge sales data.

Cambridge single-family home sales in January ’08 – 6 sold
Avg. single-family home sales price in January ’08 – $1,201,667.00

Cambridge single-family homes sales in January ’09 – 2 sold
Avg. single-family home sales price in January ’09 – $411,500.00

Ouch! That Hurts!