Massachusetts median prices grew slightly in November, inventory remained constrained
The median sales price of a home and condo in Massachusetts grew slightly in November, as housing inventory remained tight, according to the Massachusetts Association of Realtors November housing statistics report.
Although the median home price increased, the market is still trending toward normal fluctuations, MAR found.
Last month, the median price for a single-family home was $525,000, a slight increase from October’s $520,000. Single-family home listings, meanwhile, were down 4.6%, compared to the previous year.
Condominium prices also rose in November, to $460,000 from $434,000 in October.
Similar to single-family home listings, new condo listings fell 5.2%, compared to last year.
The report noted that while the holiday season is historically a slow period, November’s data doesn’t show a major slowdown. Instead, it shows decreased demand — a good thing for new construction, which can increase inventory in the upcoming months.
“Historically, data has shown a decrease in demand this time of year, though buyers remained active in November,” 2022 MAR President Dawn Ruffini said in a press release. “Buyers continue to purchase homes before properties have the chance to stay on the market for longer than 33 days, on average. This sustained demand is partly due to the low mortgage rates we’ve seen for months and the continually low supply of homes available.”
The report also found that single-family closed sales fell 6.2% compared to last year, while closed condo sales rose 3.5%.
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Mr. Zandi of Economy.com said he expects the nation’s housing prices to fall another 8 percent during 2010 and bottom out by the end of the year — 34 percent lower than they were at the market’s peak in the spring of 2006.
Housing prices will increase once foreclosures start to fall. “It will be a number of years before prices really start to rise in a normal way,” Mr. Zandi said.