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The median price of a Massachusetts single-family home surged 14.3 percent in August as low inventory of homes for sale pressured buyers to compete aggressively, according to a new report from The Warren Group, publisher of Banker & Tradesman
Last month, there were 6,675 single-family home sales in Massachusetts, a 0.8 percent increase from August 2019 when there were 6,621 transactions. Meanwhile, the median single-family home price increased 14.3 percent on a year-over-year basis to $480,000 – an all-time high for single-family homes. This is the second-consecutive month that single-family transactions and the median sale price experienced notable gains following a lackluster second quarter due to COVID-19 and the resulting lockdown.
“Now that we have two consecutive months of data supporting the fact that homebuyers are shopping again, I think it’s safe to say that the Massachusetts real estate market is adapting to a COVID-19 world,” said Tim Warren, CEO of The Warren Group said in a statement. “For the second straight month, we saw the biggest upticks in single-family activity in Barnstable, Berkshire and the island counties, which could indicate that buyers are seeking second homes in safer rural areas of the state. Or perhaps some home buyers have found that working remotely is a viable option and are leaving the job centers in Greater Boston.”
Year-to-date, there have been 36,145 single-family home sales – an 8 percent decrease from the first eight months of 2019 – with a median sale price of $435,000, representing an 8.2 percent increase on the same basis.
There were 2,560 condo sales in August, a 2 percent decrease from August 2019 when there were 2,613 transactions. Despite the slight decline on a year-over-year basis, the condo market is improving following massive declines in transactions during the second quarter. Year-to-date, there have been 14,518 condo sales – an 11.7 percent decrease from the first eight months of 2019 – with a median sale price of $417,000, an 8.3 percent increase on the same basis.
“In August, with a modest decline on a year-over-year basis, the condo market showed improvement over the 32.7 percent decline in the second quarter,” Warren added. “The median sale price of $425,000 marked an all-time high, but I’m still curious to see how demand will be impacted in the months to come as everyone adjusts to the presence of the pandemic.”
While home prices continued to grow strongly, the number of home son the market continued to shrink. The Massachusetts Association of Realtors reported last week that the state had less than half the number of single-family homes for sale in August – 6,707 as it did one month ago – 15,274. And those homes are disappearing from the market faster than the same time last year, with the average time a single-family home spent on the market dropping from 52 to 49.
