The costs of single-family homes in Massachusetts continued to rise in July according to Warren Group data. Graphic by Sam Minton | Banker & Tradesman Staff
The month of July saw home prices reach an all-time high but home sales also managed to skip upwards.
The median single-family home price increased from $610,000 in July of 2023 to a record high $650,000 for the month (6.6 percent increase year-over-year) according to The Warren Group, publisher of Banker & Tradesman. The year-to-date median home price of a single-family home has increased from $565,000 in July of 2023 to $618,500 in July of 2024 (9.5 percent increase year-over-year).
July saw 4,427 single-family homes sold, an increase of 8.2 percent compared to July of 2023.
“Yes, a median sale price of $650,000 was a new all-time high for the month of July, and month after month prices are setting new records, but price gains are smaller than they could be,” Cassidy Norton, associate publisher of Banker & Tradesman and media relations director of The Warren Group, said in a statement. “Interest rates are more than double where they were two years ago, and I’m certain prices would be even higher without those changes. That does lead to a lack of inventory that may have abated price gains somewhat. Unfortunately, the lack of inventory will continue to be the biggest factor driving prices for the foreseeable future.”
The combined inventory of single-families and condominiums for sale has increased year-over-year in Greater Boston according to Redfin (15.5 percent growth) but it remains well below numbers from before the pandemic. In July 2019, total inventory peaked at 11,226 homes for sale. This July, Greater Boston’s inventory sat at 5,960 homes, a nearly 47 percent decline year-over-year.
Within Interstate 495, The Warren Group reported that 2,311 single-family homes and 1,447 condos sold, 11.8 percent and 3.1 percent increases, respectively. The median single-family sale price there rose 3.2 percent year-over-year to $800,000 while the median condo sale price stayed flat at $65o,000
Statewide, the Massachusetts Association of Realtors reported 6,035 single-families and 3,007 condominiums for sale, 1.9 percent and 0.7 percent increases year-over-year respectively. The association reported 4,349 new single-family listings and 1,814 new condo listings, 12.5 percent and 4.8 percent increases over July 2023, respectively.
MAR CEO Theresa Hatton said in an interview she believes that potential future Federal Reserve rate cuts could be playing a role in the continued inventory struggles despite a notable drop in the average 30-year mortgage rate during the month of July.
“I think people are taking the Fed’s comments into consideration and holding off a little bit until potentially another rate drop before they commit to a house and a mortgage,” she said. “Our closed sales year-over-year are up, which is great and amazing, but we’re not putting the inventory back on to replenish what’s been sold. So we’re still in this predicament of needing more housing.”
Hatton believes until inventory increases, Massachusetts will continue to be a seller’s market.
Statewide sales of condominiums also increased from 1,886 in July of 2023 to 1,947 in July of 2024, The Warren Group reported, even though year-to-date sales are still in the red. The year-to-date median condominium price increased from $519,900 to $545,000.
While July’s median condo sale price increased to $565,000, from $555,000 in July of 2023, compared to June of 2024 the median prices dropped by $5,000.
“The median condo price also reached a new high for July, but prices were down moderately from the previous month,” Norton said. “This could be an early indicator that condo prices are starting to plateau.”
