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Even as Massachusetts single-family prices broke another record last month, a sign emerged that the state’s inventory drought could be easing.

Last month, there were 6,959 single-family home sales in Massachusetts, a 38.1 percent increase from June 2020 when there were just 5,038 transactions according to The Warren Group, publisher of Banker & Tradesman. Compared to May 2019 (6,530 transactions), single-family home sales increased 6.6 percent. In June 2021, the median single-family sale price spiked 26.1 percent on a year-over-year basis to $555,000, up from $440,000 in June 2020 and up 29.4 percent from June 2019 when the median sale price was $429,000. This marked a new all-time high for the median sale price and the third consecutive month that the median single-family home price has hovered above $500,000.

“Homes put under agreement in this year’s extraordinary spring market typically close over the summer months,” Tim Warren, CEO of The Warren Group, said in a statement. “June’s closed sales show just how extraordinary 2021 is turning out to be. High buyer demand, record low interest rates and dwindling inventory won’t be changing any time soon, and median sale prices will likely continue to break records this summer and fall.”

While the statewide market still had less than one month’s supply available in June, according to the Massachusetts Association of Realtors – a far cry from the five to seven months’ supply that signals a balanced market – the association reported more 1,400 new single-family listings in June than hit the market in May. May typically sees the largest number of new listings every year.

More Sellers Statewide

2021 MAR President Steve Medieros told Banker & Tradesman that figure was a positive sign for buyers frustrated by rapidly-rising prices and repeatedly losing bidding wars.

“That shows me people are getting more comfortable putting their homes on the market,” he said.

A substantial number of the homes coming on the market are owned by sellers previously reluctant to list, out of fear they wouldn’t be able to buy a new home. A successful rollout of COVID-19 vaccines also helped build seller confidence, said Medieros, a broker associate with Keller Williams in Dartmouth.

However, the pace of home sales is still rapid, he said – “if it comes on, it’s gone that weekend” – with the average cumulative days on market for a single-family home sitting at a mere 29, down from 51 in June 2019.

“I think right now if you’re working with buyers, you need to consistently educate them on the process, explain that they still need to stay within their parameters for what they want to buy and not get caught up in a bidding war and out of frustration start making offers on properties that don’t meet their needs,” he said.

Greater Boston Saw Bump

One of the biggest jumps in new listings occurred in Greater Boston, where 2,117 single-family homes hit the market in June, compared to 1,688 in May according to MAR. Total inventory stood at 1,066 last month, up from 835 in May.

“Inventory levels have been rising since the start of June, and some buyers are opting to renew leases or put their home search on hold rather than overextend themselves financially and that’s help take some of the upward pressure off prices. In recent weeks, both the volume and frequency of multiple offers have declined, while price adjustments have become more commonplace,” Greater Boston Association of Realtors 2021 President Dino Confalone said in a statement.

The overall effect points to a softening, but still strong, regional market in the second half of 2021, he said.

‘It’s been an extremely overheated market this spring, but we think the market is poised to catch its breath. We expect sales to slow and the run up in prices to ease in the second half of the year, as the current level of activity isn’t sustainable long-term,” said Confalone, an agent at Gibson Sotheby’s International Realty in Cambridge.

Cape Sees Record Listings Low

One area most in need of new listings – Cape Cod – instead saw a record low number of homes come to market last month.

Despite a general trend towards an increase in the number of homes coming onto the market, the Cape Cod and Islands Association of Realtors reported, June 2021 saw the lowest number of new listings for a June in 18 years. A mere 489 single-family homes and 105 condominiums came to market on the Cape last month, compared to the 710 and 171, respectively, that were offered for sale in June 2019.

“What we’re hearing is that demand is drying up a little bit. Instead of offers – getting 10 or more – you might be getting four or five. But it’s specific to the price point and the location of the property,” CCIAOR CEO Ryan Castle said in an interview. “I think there definitely is a buyer fatigue out there.”

Between seasonal residents declining to list in the summer, when they might be down on the Cape enjoying their homes, and the decline in buyer demand, the market has stayed tight, Castle said. The fall may provide a much-needed inventory boost, he added, but it remains to be seen whether the wave of buyers relocating to the Cape to take advantage of work-from-home policies will fade.

“I still think the open question is: What are the large Boston employers doing?” Castle said.

Statewide Condo Market Still Tight

There were 3,169 condominium sales in June, a 74.3 percent increase from June 2020 when there were 1,818 condo sales, The Warren Group reported. Compared to June 2019 (2,620 transactions), condo sales were up 21 percent. Meanwhile, the median sale price increased 22.3 percent on a year-over-year basis to $489,000 – a new high for the month of June. This also marked the eleventh consecutive month that the median condo price has been above $400,000. Compared to June 2019 ($380,000), the median condo price was up 16.4 percent.

“The numbers don’t lie,” Warren, the company’s CEO, said in a statement. “Housing activity in urban centers, which is heavily dominated by the condo market, is back after taking a considerable hit during the second quarter last year. A total of 3,169 sales marked the most condo sales we’ve seen since June 2006, when the median condo price was less than $300,000.”

Year-to-date, there have been 13,858 condo sales, a 46.4 percent increase from the first six months of 2020 with a median sale price of $460,000, a 12.2 percent increase on the same basis.