Paul Yorkis, president, Massachusetts Association of Realtors

WALTHAM, MA—Statistics released by the Massachusetts Association of Realtors and the Greater Boston Association of Realtors confirm that the continued decline in for-sale inventory is having negative impacts on the market—particularly causing higher prices and lower sales volume.

Both Realtor associations recently released their respective housing market statistics for the month of September. According to MAR, single-family home sales in the commonwealth have been flat or declined for the last 12 months.

In the month of September of this year, there were 4,833 single-family home sale transactions, a 5.8% decline from the 5,186 posted a year earlier. The median single-family home price in Massachusetts was $380,000, up 8% from a year earlier when the median sale price was $352,000. Median single-family home prices have been up or flat for 21 out of the last 22 months, MAR reports.

“This is the sixth month in a row of year-over-year decreases in single-family home sales,” says 2017 MAR president Paul Yorkis, president of Patriot Real Estate in Medway. “Unfortunately, the low inventory situation coupled with rising prices are taking a toll on some buyers' ability to compete in this market.”

He adds, “We need to see more listings come on to the market to deal with these record inventory lows. These listings could come from new production, people moving in with their families or in accessory dwelling units— any way it comes, young and first-time homebuyers especially will be grateful.”

Statewide, the condominium market also reflected the same data trends—declining inventory, lower sales and higher prices. There were 1,864 condominium sales statewide in September, down 7.6% from a year earlier. The median condominium sale price rose 3.9% during that same period to $350,000.

For-sale inventory of single-family homes fell 24.6% during the month of September year-over-year. The inventory of condominiums for sale fell 22.6% during that same time period to 4,079 units.

The inventory problem has been a long-standing one in Greater Boston and statewide. According to MAR, single-family home inventory has fallen 67 out of the last 68 months. In the condominium sector, inventory has declined 21 of the past 22 months and the September condo inventory is the lowest on record for the month of September.

On a brighter note, new listings of single-family homes (7,181) were up 0.3%, but marked the third straight month of increased listings for sale, MAR reports. New listings for condos fell 2.6% to 2,666 listings in September 2017.

The Greater Boston Association of Realtors says dwindling for-sale inventory and appreciating home prices are frustrating buyers in the region.

GBAR reports that 1,100 single-family detached homes in Greater Boston sold in September 2017— the seventh highest sales total for the month, but 5% lower than the 1,158 homes sold in September 2016. This is the sixth consecutive month single-family home sales have fallen year-over-year.

The condo market in Greater Boston also suffered a decline in sales with 865 units sold in September 2017, a 14.2% decrease in sales volume from the 1,008 units sold in September 2016. Last month's condominium sales volume was the seventh most active September on record in Greater Boston, and was higher than the historical monthly average of 834 units sold.

“There's no shortage of buyers, just an inadequate supply of homes to sell,” says GBAR president Melody Skye Roloff, an agent with EXIT Realty Beatrice Associates in Middleton.

With mortgage rates still near record lows, incomes rising, and our economy adding jobs, buyer traffic has remained steady throughout the traditionally slower summer months, she notes.

The median sales price for single-family homes reached a new record high price for the month of September 2017 at $573,500 which was a 13.1% increase on the September 2016 median sales price of $505,000. There was a slight decrease in median sales price in the condo market, as units were selling at a median price of $497,500, which was a 2.4% decline from the September 2016 median sale price of $509,690, which was a record-high price for September in Greater Boston. Despite the condo median price decline, it was the second-highest median sales price on record for the month of September.

“It remains a seller's market with demand outpacing supply at most price points. As a result, buyers continue to face multiple offer situations and bidding wars, though, not at the frequency or intensity as we saw during the previous twelve months,” Roloff says. “With the inventory slowly catching up a bit last month, prospective sellers can feel confident about listing their homes as we have seen a continued decline in how quickly homes are going under contract.”

Active listings of single-family homes fell a modest 5.7% in Greater Boston from the September 2016 total of 3,745 to 3,532 this year. Condominium active listings rose 3.4% in September, for the first increase since March 2016. Condo listings totaled 2,280 in September of this year as compared to 2,205 in September 2016.

Massachusetts

For-sale inventory of single-family homes fell 24.6% during the month of September year-over-year. The inventory of condominiums for sale fell 22.6% during that same time period to 4,079 units.

The Greater Boston Association of Realtors says dwindling for-sale inventory and appreciating home prices are frustrating buyers in the region.

“There's no shortage of buyers, just an inadequate supply of homes to sell,” says GBAR president Melody Skye Roloff, an agent with EXIT Realty Beatrice Associates in Middleton.

With mortgage rates still near record lows, incomes rising, and our economy adding jobs, buyer traffic has remained steady throughout the traditionally slower summer months, she notes.

Instant Insights /

Low Home For-Sale Inventory, Rising Prices Taking Toll on Market

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