Massachusetts home sales have dropped for the third straight month — and so have condo prices
The state's housing market continues its slide amid COVID-19's strangle hold on the economy, incomes, and social interaction.
The state’s housing market has continued to slide amid COVID-19‘s stranglehold on the economy, household incomes, and social interaction, according to two reports released Wednesday.
Sales of single-family homes and condos dropped by double digits in June, according to The Warren Group, publisher of Banker & Tradesman. Massachusetts saw a 23.4 percent decrease in single-family home sales and a 30.7 percent drop in condo sales.
“Even though single-family home sales saw a significant decline in June, it’s not due to a lack of demand,” said Tim Warren, CEO of The Warren Group. “The statewide inventory has steadily declined for years on end, and COVID-19 has given homeowners new reasons to stay put for now. There seem to be plenty of buyers looking for homes, and the median price has climbed every month for 51 straight months.” The median price for a single-family home edged up 2.6 percent year over year to $440,000, but condo sellers reported a 5.7 percent year-over-year drop in the median sales price to $396,000.
(See The Warren Group’s community-by-community breakdown.)
“The median condo price took its first year-over-year dip in 14 months,” Warren said. “Prior to this development, the median sale price exceeded $400,000 for four consecutive months and was actually on track to outpace the median single-family home price during the course of 2020. It seems like potential condo buyers are waiting to see how the pandemic progresses before they commit to urban living and elevator rides.”
The median condo price in Greater Boston also slipped, dropping 4.4 percent year over year in June to $592,500, according to the Greater Boston Association of Realtors. The median price for a single-family home, however, hit a record high of $679,075, an increase of 4.5 percent year over year and 1.7 percent since May.
“Our challenge these past few months has not been a lack of buyers; it’s the fact that the process of showing property and obtaining the necessary inspections and documentation requires more time and effort to perform the work and ensure the proper safety protocols are met,” said Jason Gell, association president and an agent with RE/Max Unlimited in Brookline. “Although we lost much of the spring market, we think the summer months will be much busier than normal due to pent-up demand and a steady influx of new listings since May, especially in the condo market.”
Helping to drive buyer activity locally are mortgage rates, which remain extremely low; a sizeable population of young professionals and immigrants looking to purchase their first home; and the pandemic, which has prompted a large number of city dwellers to move up their timeline for purchasing a larger home in the suburbs, Gell added.
Those buyers are facing fierce competition due to a lack of inventory of homes for sale. “In the single-family home market, the number of active listings declined by at least one-third for a third consecutive month,” according to the report. “Condo listings also were down from year-ago levels, but much more modestly so, sliding 2.1 percent.”
Buyers may find hope in the month-to-month numbers: The number of active listings for single-family homes in June was 1.3 percent higher than in May. For condos, that number jumped a whopping 20 percent.
The region saw a 40.2 percent decrease in multifamily home sales.
What are condos and single-family homes selling for in your area? Here’s the Greater Boston Association of Realtors’ breakdown for 64 communities:
Central Middlesex County
Acton, Bedford, Boxborough, Concord, Hudson, Lexington, Lincoln, Maynard, Stow, Sudbury, Wayland, and Weston
These communities saw a 7 percent increase in the median single-family selling price, from $789,500 in June 2019 to $845,000 in June 2020. Condo prices jumped 22.7 percent, from $381,500 in June 2019 to $468,000 in June 2020. Single-family homes spent an average of 44 days on the market. For condos, it was 53. The number of active single-family listings was down 37.7 percent, while the number of condos on the market dropped 40.4 percent. The number of single-family homes that sold was down 20.1 percent, while the number of condos that changed hands was down 44.6 percent.
Eastern Middlesex County
Burlington, Malden, Medford, Melrose, North Reading, Reading, Stoneham, Wakefield, Wilmington, Winchester, and Woburn
These communities saw a 4.9 percent increase in the median single-family selling price, from $605,000 in June 2019 to $634,450 in June 2020. Condo prices slipped 1.4 percent, from $466,450 in June 2020 to $460,000 in June 2020. Single-family homes spent an average of 27 days on the market. Condos were on for 31 days on average. The number of active single-family listings was down 35.9 percent, while the number of condos on the market dropped 5.1 percent. The number of single-family homes that sold was down 32.6 percent, while the number of condos that changed hands was up 23.3 percent.
Metro Boston
Arlington, Belmont, Boston, Brookline, Cambridge, Chelsea, Dedham, Everett, Milton, Newton, Revere, Somerville, Waltham, Watertown, and Winthrop
The median selling price for a single-family home edged up 6.6 percent, from $741,000 in June 2019 to $790,000 in June 2020. Condo prices decreased 4.1 percent, from $680,500 in June 2019 to $652,500 in June 2020. Single-family homes spent an average of 28 days on the market. For condos, that number was 34. The number of active single-family listings was down 14 percent, while the number of condos on the market went up 5.2 percent. The number of single-family homes that sold plummeted 42 percent, while the number of condos that changed hands dropped 43.8 percent.
Metrowest
Ashland, Dover, Framingham, Holliston, Hopkinton, Medfield, Medway, Millis, Natick, Needham, Sherborn, and Wellesley
The median selling price for a single-family home jumped 12 percent, from $673,000 in June 2019 to $754,000 in June 2020. Condo prices decreased 12.5 percent, from $440,100 in June 2019 to $385,000 in June 2020. Single-family homes spent an average of 44 days on the market. For condos, it was 55. The number of active single-family listings dropped 40 percent, while the number of condos on the market decreased 29.9 percent. The number of single-family homes that sold was down 22.1 percent, while the number of condos that changed hands was down 29.9 percent.
Southern Norfolk County
Avon, Bellingham, Canton, Foxborough, Franklin, Mansfield, Norfolk, Norwood, Randolph, Sharon, Stoughton, Walpole, Westwood, and Wrentham
The median selling price for a single-family home rose 14.4 percent, from $498,000 in June 2019 to $520,000 in June 2020. Condo prices rose 2.3 percent, from $371,500 in June 2019 to $380,000 in June 2020. Single-family homes spent an average of 31 days on the market. For condos, it was 39. The number of active single-family listings was down 38.4 percent, while the number of condos on the market dropped 25.3 percent. The number of single-family homes that sold was down 21.2 percent, while the number of condos that changed hands decreased 17.4 percent.
City of Boston
The median selling price for a single-family home rose 8.9 percent, from $660,000 in June 2019 to $718,500 in June 2020. Condo prices went down 7.7 percent, from $704,016 in June 2019 to $649,500 in June 2020. Single-family homes spent an average of 25 days on the market. For condos, it was 38. The number of active single-family listings was down 10.8 percent, while the number of condos on the market rose 8.4 percent. The number of single-family homes that sold plummeted 44.4 percent, while the number of condos that changed hands decreased 39.1 percent.
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