Updated: Boston Real Estate Blog 2023
Byline – John Ford Boston Beacon Hill Condo Broker 137 Charles St. Boston, MA 02114
Massachusetts homes and Boston condos reach new highs
According to a recent report from the Warren Group, there was a significant surge in median prices for home and condo sales last month, reaching unprecedented levels in October. This surge can be attributed to a notable shortage of inventory, which remains significantly lower than historical averages.
In October, there was a 16.9% decrease in the number of single-family home sales compared to the previous year, with only 3,515 homes sold. This signifies the lowest sales volume for this month since 2011. On the other hand, the median sale price for single-family homes saw a significant increase of 10.6%, reaching a new record high of $570,000 for October.
“The prices of homes sold in October reached their highest point ever seen during this period,” stated Cassidy Norton, an associate publisher and director of media relations at The Warren Group. Norton also noted that the number of homes sold was at its lowest level in 11 years. The availability of goods on hand is significantly lower than previous standards, and the restricted variety exacerbates the challenge of locating a suitable residence. Additionally, the unprecedented surge in prices coupled with increasing interest rates further intensifies the already formidable task of purchasing a home.
From January onwards, a total of 34,515 houses have been purchased, indicating a decrease of 23.9% compared to the initial ten months of 2022. Simultaneously, the median price for single-family homes increased by 3.6% to reach $570,000.
In a corresponding fashion, there was a decline in condominium sales accompanied by an increase in prices during the previous month.
In comparison to October of the previous year, there was a decrease of 9.4% in condo sales, totaling 1,562 transactions as opposed to 1,725. Conversely, the median sale price demonstrated a rise of 4.4% to reach $500,000, setting a new October record.
According to Norton, condominium prices in Massachusetts experienced a remarkable surge in October, reaching an all-time high and establishing a new standard. Previously considered as a more budget-friendly alternative to purchasing a single-family home, condos now fall short by only $75,000 in comparison. In the state of Massachusetts, families who choose to own a condo can enjoy advantages such as the sharing of maintenance duties, access to amenities, and a feeling of belonging to a community. This unique form of homeownership provides a distinct experience for residents.
As of now in the current year, there has been a total of 64,362 condominiums sold throughout the state, experiencing a decline of 19.7% compared to the previous year. In contrast, the median sale price has seen an increase of 4.9%, reaching $515,500.