April’s home sale data offers those of a hopeful disposition a few signs that this year may see a slightly healthier housing market, but the reality is far more pessimistic.
Last month, there were 4,279 single-family home sales recorded in Massachusetts, a 2.8 percent increase from April 2018 when there were 4,162 transactions according to The Warren Group, publisher of Banker & Tradesman (see Week on the Web, page 2). The median price for those sales was $382,500, a mere 2 percent year-over-year increase from 2018.
However, single-family home inventory dropped by 8.6 percent in April on a year-over-year basis, to 11,928 homes for sale, according to the Massachusetts Association of Realtors, the 86th decrease in the past 87 months and the lowest number of homes on sale ever for the month of April. The number of months of supply also dropped in April on a year-over-year basis, from 2.8 to 2.5.
The condominium market offers a somewhat better picture, but not by much. The number of sales were up slightly over 2018, at 1,990 in April according to The Warren Group, but were down by 3 percent year-to-date to 6,192.
If you care to cling to straws, we suggest casting an eye on MAR’s inventory report, which found 4.7 percent year-over-year growth to 4,240 units – the fourth consecutive month of increases – and the number of months of supply growing 4.5 percent to 2.3. The number of days on the market grew 14 percent to 57 but the number of new listing dropped slightly to 3,130. A big chunk of this supply increase came in Greater Boston, with 1,909 condos on the market last month, a 15.1 percent increase over April 2018.
More supply is certainly a positive trend, but the median condominium sale price should give anyone pause before getting their hopes up about a hidden affordability miracle underway.
The median April condo sale price was $604,000 in Suffolk County, according to The Warren Group, and $450,000 in Middlesex County. Year-to-date, the median Suffolk County condo has gone for $579,500, and the median Middlesex County condo has gone for $435,000.
These figures suggest many of the recent sales are of higher-end units, if not outright luxury ones, in precisely the communities where more affordable supply is needed most.
