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While home prices continue to rise across the state, the number of sales took a downward turn after showing positive year-over-year growth in August.
According to a new report from The Warren Group, publisher of Banker & Tradesman, single-family home sales decreased 3.7 percent year-over-year in September after seeing a 2.2. percent increase year-over-year the month prior.
While home sales decreased, home prices continued to rise as the year-to-date median single-family home price increased by 8.3 percent to $617,500. While prices increased on a year-to-year basis, the year-to-date median single-family home price decreased from $620,000 in August.
“The Massachusetts single-family housing market in September saw a slight cooling in sales, with 3,482 homes sold – a 3.7 percent decline from the same time last year,” Cassidy Norton, associate publisher and media relations director of The Warren Group, said in a statement. “Elevated interest rates and limited inventory are likely key factors slowing the pace of transactions, despite continued demand. At the same time, prices remain robust, with the median home price reaching $600,000, a 6.2 percent increase year-over-year and a record for September. However, the rapid rise in prices appears to be flattening compared to previous years, signaling a potential shift in market dynamics.”
The Greater Boston market stayed strong as sales increased by two percent with 1,665 single-family home sales. The year-to-date median single-family home price increased by 6 percent to $770,000. Similarly to the Massachusetts market, in Greater Boston the year-to-date- median single-family home price decreased from August ($775,000).
The Massachusetts condominium market saw dips in sales while prices continued to increase. Condo sales dipped by 10.7 percent with 1,490 sales in September. The year-to-date median condominium price increased by 4.3 percent to $540,000.
“The Massachusetts condo market saw a significant slowdown in September, with just 1,490 transactions – a 10.7 percent decrease compared to last year,” Norton said. “This marks the fewest number of condo sales for the month since September 2011. With median prices at record highs and interest rates remaining elevated, these factors are likely contributing to the drop in activity.”
Graphic by Sam Minton | Banker & Tradesman Staff
