September 27, 2017
The Median Price of Single-Family Homes in MA Tops $400k
The median sales price of single-family homes in Massachusetts rose above $400k this summer for the first time, with some real estate statistics showing it reaching as high as $410,000. Meanwhile, the median sales price for homes in the Boston metro area reached $615,000.
According to the Massachusetts Association of Realtors® (MAR), the median sales price for single-family homes in the state reached $410,000 in June, and then remained above the $400k mark for July, dipping only slightly below it to $399,000 in August.
Low Inventory Keeping Prices Up
The low inventory of homes in the state is reportedly keeping prices elevated. The inventory of single-family homes in Massachusetts was down in July by more than 28%, for example, compared to the same month last year.
Single-family home prices were up by more than 6% in July and more than 5% in August compared to the same months last year. Pending home sales also jumped, up by more than 11% in August from August 2016.
“We knew there was a good chance that the $400,000 barrier would be reached and passed,” said 2017 MAR President Paul Yorkis in a press release. “But the speed at which it did underscores what happens when there is very high demand coupled with very low supply. As prices increase more and more people will be priced out of the market, which isn’t good for our economy.”
Confidence in Market Still High
Despite concerns about the current inventory of homes and the elevated prices, homes are still selling fast, causing confidence in the market amongst realtors to remain high. The Realtor® Market Confidence Index was up for the 27th time in 28 months in August, while the Realtor® Price Confidence Index was also up for the sixth time in seven months.
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