Condo sales drop in August, compared to year ago figures

The National Association of REALTORS® reported a decrease in pre-owned home sales in July, with the median cost of a dwelling totaling more than four hundred thousand dollars for the fourth time ever.

The middle value of the existing-house cost across all living accommodations in July was $406,700, decreasing from $410,000 in June yet increasing 1.9% from the year prior at $399,000.

From June to July, the sale of established homes dropped 2.2% to an adjusted yearly rate of 4.07 million. Compared to the same period the year before, sales decreased 16.6%, from 4.88 million in July 2022.

Inventory levels and financing costs are both factors that have impeded sales according to Lawrence Yun, NAR’s Chief Economist, as stated in a recent press release.

The thirty-year fixed mortgage rate averaged seven point oh nine percent as of the eighteenth of August, increasing from six point ninety-six percent a week prior and five point thirteen percent in the previous year, according to Freddie Mac.

The number of dwellings at the end of July reached 1.11 million, increasing 3.7% from June but dropping 14.6% compared with the same time a year ago. With the existing rate of sales, there were 3.3 months worth of unsold stock, a slight hike from June’s 3.1 and July 2022’s 3.2 months.

Homes stayed listed for an average of 20 days in July, which is higher than the 18 days in June and 14 days during July 2022. Almost three-quarters of residences that sold were accessible for sale for less than thirty days.

In July, the sale of single-family houses declined 1.9% month to month to 3.65 million; the median cost of an existing single-family residence was $412,300, seeing a 1.6% year-over-year growth.

The amount of existing condominiums and co-operatives sold declined to a seasonal benchmark of 420,000 units, with a 4.5% drop from June to July. Compared to the rates of July 2022, this figure is 19.2% lower. Looking at the median cost of such properties, it was found that the price increased by 4.5%, sitting at $357,600 from the previous year’s $342,200.

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Condo sales fell 18.5 percent, to 2,103 sales in August, and prices declined 3.3 percent, to $278,000, according to data released by the Massachusetts Association of Realtors.

In August, it took 109 days to sell a single family and 108 days to sell a condo. A year earlier, the time on the market for each was just 77 days.

For comparison sake, here’s something to think about. Interest rates have gone up, over the past year. The average 30-year fixed rate mortgage loan is now 6.52%, whereas last year, at this time, it was 5.82%.

$500,000 mortgage loan, at 6.52%, will cost you $3,166.92 (this year)
$500,000 mortgage loan, at 5.82%, would have cost you $2,940.14 (last year)

This isn’t the whole picture, though. Condo prices have dropped 3%, according to the Globe (from one year to the next, I believe).

You might have heard they have dropped more – earlier this year, June to June, the drop was like 5.6%. These numbers aren’t cumulative, so it’s not like it was down 5.6%, in June, and ANOTHER 3%, in August; they are comparing year to year.

Let’s assume, for kicks, that there has been a 10% correction, over the past twelve months:

How much more home can you buy, today, versus last year?

$500,000 mortgage loan, at 5.82%, would have cost you $2,940.14 (last year)
$450,000 mortgage loan, at 6.52%, will cost you $2,850.23 (this year)

More: Massachusetts housing sales plummet – The Boston Business Journal

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