Single-family dwelling gross sales have been down a 3rd in Massachusetts final month however the median worth of the few houses that bought set the all-time excessive for January, a dynamic that analysts at The Warren Group mentioned displays how few houses can be found within the Bay State.
The 2,379 houses bought right here final month represented a lower of 32.6% from January 2022 and a drop of 38.3% in comparison with January 2021, The Warren Group mentioned. Meanwhile, the median sale worth of $499,000 is up 0.8% from a yr in the past and 11.9% from two years in the past.
“The lack of inventory in the housing market continued to add upward pressure to the median single-family home price. The 2,379 single-family home sales marked the fewest number of transactions for the month of January since 2011 and the lack of inventory is mostly to blame,” Cassidy Norton, affiliate writer and director of media relations for The Warren Group, mentioned.
“Add in the fact that interest rates are nearly double what they were a year ago and the rising cost of consumer goods, and we can expect sales numbers to continue their downward trend in the coming months,” she mentioned.
The Massachusetts housing market confirmed indicators of a cooldown on the finish of 2022 after two years of double-digit will increase in costs and stock that couldn’t sustain with demand. The Warren Group mentioned final month it expects that to be the theme of 2023 as a result of houses in Massachusetts value greater than patrons are keen to spend, stock is drying up and rising mortgage charges make a purchase order much more pricey.
The story was related for the condominium market. Last month’s 1,178 condominium gross sales have been down 27.9% from final January and the median sale worth spiked 9.2% year-over-year to $480,500 — additionally a brand new document for the month of January.
“Historically, condos were a more affordable alternative to single-family homes, but that doesn’t appear to be the case any longer,” Norton mentioned.
Gov. Maura Healey declared excessive housing prices “unacceptable for our people, our businesses and our state’s future” in her inaugural deal with and is anticipated subsequent month to file long-promised laws to create a standalone secretary of housing, splitting it off from the present Executive Office of Housing and Economic Development.
Nationally, the image was related, with decrease stock and sale numbers in January towards barely increased costs.
U.S. dwelling gross sales fell to a seasonally adjusted annual price of 4 million properties final month, in line with the National Association of Realtors. That’s the slowest annual tempo since October 2010, when the housing market was nonetheless reeling from the 2008 foreclosures disaster.
January’s gross sales cratered by practically 37% from a yr earlier and slipped 0.7% from December.
The median worth of a house, nonetheless, edged up 1.3% from January final yr to $359,000. That’s the slowest annual improve in dwelling costs since February 2012. The median dwelling worth nationally is down round 13% because it peaked in June final yr.
Source: www.bostonherald.com”