The Greater Boston housing market is hot with rising prices and sales. The sky-high prices, combined with a historic scarcity of housing supply in this region, reflect a sizzling seller’s market. Buyers are grabbing whatever they can find, especially single-family homes in suburban towns, because they are desperate for space and are aided by low-interest rates. At the same time, many current homeowners are holding back, preventing supply from entering the market.
The median price of a single-family home in the region surged to $761,000 in May, which was a 14.0 percent increase from the May 2020’s median sales price of $667,500, according to data from the Greater Boston Association of Realtors. The demand for single-family homes is high. The 1,161 homes sold were the tenth-highest monthly sales volume and a 29.9 percent increase over the 894 homes sold in May 2020.
Condominium prices climbed 10.3 percent from $578,754 in May 2020 to a new record high price for May at $638,250 this year. It was the most active May on record in Greater Boston, with 1,372 condos sold, up 123.1 percent from the 615 units sold in May 2020. 252 multi-family units were sold in Greater Boston, representing a 176.9% increase in sales volume over the 91 multi-family units
Despite an increase of 52.8% year-over-year in pending sales in May, active listings dropped by -41.0%. It is one of the factors that affect overall sales dollar volume while simultaneously creating a very competitive and tight market that keeps the home prices from plunging. The biggest challenge holding back sales is the lack of enough inventory to sell with months of supply dropping to 1.1 months.
Compared to April, the new listings of single-family homes also saw a decline of 13.8%. Sellers still hold the upper hand due to the imbalance between supply and demand. At the current pace of buying, inventory would run out in just five weeks. On the other hand, the Boston home buyers are benefitting from record-low mortgage rates.
Realtor.com’s Sep 2020 report shows that the median list price of homes in Boston, MA was $779K, trending up 4% year-over-year. The median listing price per square foot was $680. The median sale price was $703.5K. Homes in Boston, MA sold for approximately the asking price on average in September — Sale-to-List Price Ratio: 99.83%.
Ideally, a buyer would prefer a sale to list price ratio that’s closer to 90% whereas a seller would always prefer scenarios that can yield a ratio of 100% or higher. On average, homes in Boston, MA sell after 65 days on the market. The trend for median days on market in Boston, MA has gone up since last month, and slightly down since last year.
According to Realtor.com, the median national price for active listings grew 15.2 percent in May 2021 compared with May 2020 to $380,000, a record high. However, that pace of growth in May was lower than the 17.2 percent increase in April year over year and is the first time the annual growth rate has slowed in 13 months other than in February, which was affected by extreme weather.
When drilling down to the largest metro areas in the country, active listing prices grew an average of 7.4 percent in May 2021 compared with May 2020, lower than the growth rate of 11. percent in April. Regionally, listing prices increased the most in Western markets (13.3 percent), compared with 8.2 percent in Southern markets, 5.9 percent in Northeastern metro areas, and 1 percent in Midwestern metro areas.
The median list price in the D.C. metro area, $510,000, was the same in May 2021 compared with May 2020. The metro areas with the sharpest listing price increases in May were Austin (32.2 percent), Riverside, Calif., (21.5 percent), and Las Vegas (18.5 percent). The median list price in the
Boston metro area:
What is the median list price in the Boston metro area?
$700,000, was 11 percent higher year over year.
How long do Boston homes stay on the market?
Boston homes staying on the market an average of 22 days, a 59 percent decrease, according to Realtor.com.
Are national median listing prices growing in 2021?
Redfin’s analysts pointed out a few other indications that the housing market may be returning to a more normal pace, such as the decline of pending sales by 3 percent for the four-week period ending May 2, compared with a 2 percent increase during that same period in 2019. (Pending sales were up 38 percent compared with that period in 2020, but that was during the initial phase of the pandemic when the housing market was nearly at a standstill.) Active listings fell 37 percent during that same four-week period compared with 2020.
Mortgage applications for a purchase declined during three of the five weeks ending between April 30 and May 28, down by 3 percent to 4 percent each week and rising just 1 percent to 2 percent during the other two weeks, according to data from the Mortgage Bankers Association.