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Massachusetts home sales totals in October were consistent with pre-pandemic levels as buyer behavior continued its return to normal cycles, real estate experts said. At the same time, though, inventory remained depressed forcing prices significantly higher.
Last month, there were 5,285 single-family home sales in Massachusetts according to The Warren Group, publisher of Banker & Tradesman. Compared to October 2019 (5,235 transactions), single-family home sales increased 1 percent. In October 2021, the median single-family sale price increased 9.9 percent on a year-over-year basis to $500,000, up from $455,000 in October 2020, and up 28.5 percent from October 2019, when the median sale price was $389,000. This marked a new all-time high for the median sale price for the month of October and the seventh consecutive month that the median single-family home price has been at, or above, $500,000. October 2021’s total home sales figures were 21.2 percent down from October 2020 when there were 6,704 transaction, largely due to the pandemic lockdowns of spring 2020 shifting homebuyer demand later in the year and sudden drops in interest rates fueling a dramatically demand surge.
“At first glance a casual observer might think that a decline of 21.2 percent in single-family home sales in October was a cause for concern about the real estate market in Massachusetts,” The Warren Group CEO Tim Warren said in a statement. “However, I would point out that the second half of 2020 was an extraordinary six months for home sales due to the disruption to the 2020 Spring market by COVID-19. October sales this year beat the number in October 2019, and every other October all the way back to 2004. Somehow, despite low inventory, high prices and rising interest rates, homes keep selling at pretty good clip, and prices continue their upward climb.”
The number of single-family homes on the market in October was 5,096, according to the Massachusetts Association of Realtors, a 21 percent decrease from September 2021 and a 62.07 percent decrease from October 2019. The average single-family home spent 30 days on the market, three days longer than September’s average of 27 days and single-family homes sold faster than any other October since MAR began reporting data in 2004. And new listings for single-family homes were down 19.2 percent and condominium listings decreased 25 percent compared to the same period last year.
These inventory constraints are pushing some potential buyers to rent, increasing competition and rent prices, MAR said in its own statement about October home sales.
Year-to-date, there have been 51,150 single-family home sales in Massachusetts, according to The Warren Group, a 3.4 percent increase from the first 10 months of 2020. Meanwhile, the year-to-date median single family home price increased 15.1 percent on the same basis to $510,000.
There were 2,089 condominium sales in October, a 15.8 percent decrease from October 2020 when there were 2,482 condo sales. Compared to October 2019 (2,119 transactions), condo sales were down 1.4 percent. Meanwhile, the median sale price increased 3.7 percent on a year-over-year basis to $425,000 – a new high for the month of October. Compared to October 2019 ($370,000), the median condo price was up 14.9 percent.
“Our three-year condo sales comparison followed trends similar to single-family homes – there was a massive spike in activity in October 2020, but activity has more of less settled and returned to seasonal norms,” Warren said.
Year-to-date, there have been 24,177 condo sales, a 23.9 percent increase from the first 10 months of 2020 with a median sale price of $456,500, a 10 percent increase on the same basis
