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Massachusetts single-family home and condominium prices surged in January on a year-over-year basis, as the local housing market continued its upward climb at the start of the new year, according to a new report from The Warren Group, publisher of Banker & Tradesman.
Last month, there were 3,507 single-family home sales recorded in Massachusetts, an 8.1 percent increase from January 2019 when there were 3,244 transactions. Meanwhile, the median single-family sale price increased 6.8 percent on a year-over-year basis to $393,000, up from $355,000 in January 2019 and a new all-time high for the month of January.
“The considerable momentum in the single-family housing market in 2019 clearly has carried over into the new year,” said Tim Warren, CEO of The Warren Group. “The median sale price of $393,000 marked an all-time high for the month of January, and if this is any indicator, we can expect 2020 to be another record-setting year for Massachusetts real estate.”
In January, there were 1,517 condominiums sold, compared to 1,248 in January 2019 – a 21.6 percent increase and the most transactions recorded for the month of January since 2007. The median sale price followed a similar trend, rising 12.4 percent on a year-over-year basis to $399,000.
“The median condo price surpassing the median single-family home price is truly a rarity,” Warren continued. “The last time this occurred was in March 2018, and has now occurred just five times in history. Newly built and renovated condos are driving the market – especially in the Greater Boston area – and commanding higher prices.”
The Massachusetts Association of Realtors reported that single-family inventory, months of supply, days on market and new listings all fell on a year-over-year basis. Inventory is down 34.7 percent to 7,939 homes, and the number of months of supply dropped by 34.6 percent to 1.7 months. The number of new listings dropped 8.2 percent to 3,931, while the number of days on market dropped from 77 to 73.
MAR reported also across-the-board declines in the same figures for the condominium market, with inventory dropping 26.2 percent to 3,000 units, the months of supply dropping from 2.2 months to 1.6 months, the number of days on market falling from 64 to 63 and the number of new listings falling by 7 percent to 1,888.
“With the lack of homes for sale in the state, the question we must ask is this, what are the long-term implications for Massachusetts if buyers are not able to find affordable homes here? We must increase production to meet the needs of our current and future residents,” 2020 MAR President Kurt Thompson, broker at Keller Williams Realty North Central in Leominster said in a statement.
