The Massachusetts actual property market noticed the median gross sales value for a single-family dwelling drop final month when in comparison with April 2022, the primary year-over-year decline since 2018, based on information launched this week by the state’s high market-watchers.
Lower priced properties are being bought loads faster than these on the excessive finish, bringing down the median gross sales value, each the Warren Group and Massachusetts Association of Realtors advised the Herald on Tuesday.
The median value of a single household dwelling fell 1.2% to $553,500, down from $560,000 in April 2022, based on figures from the Warren Group. The variety of single-family properties bought, 2,897, additionally dropped final month, by 25.3%, in comparison with the yr earlier than.
Cassie Norton, affiliate writer on the Warren Group, pointed to 2 driving elements behind the decline: the Fed’s rate of interest being on the highest degree in 16 years, and the shaky banking trade, with three banks collapsing to this point this yr.
“The people on the higher end of the market are more affected by things like that,” Norton mentioned. “They have more money on Wall Street, in stocks, so they might have been a little more gun shy about doing a major home purchase while things were a little chaotic.”
Fewer condominiums bought final month as nicely, with simply 1,500 transacting in comparison with the two,149 in April 2022, a 30.2% lower. The median sale value of condos additionally fell by 3.1% on a year-over-year foundation to $513,500, the Warren Group figures present.
Since it’s simply one-month’s price of information, it’s too early to know for certain how issues will look going ahead, particularly when the state’s housing inventory shouldn’t be maintaining with demand, mentioned David McCarthy, president of MAR.
Last month confirmed the bottom variety of single-family properties (3,205) and condominiums (2,554) on the market within the month of April since McCarthy’s group started reporting the information in 2004.
“It is a competitive situation for the buyers, and it’s really unfortunate for the buyers,” McCarthy mentioned. “Obviously some sellers like it because they’re still seeing some price appreciation, and yet, it’s not good for the overall market.”
Through the primary 4 months of 2023, the year-to-date median single-family dwelling value has elevated 2.9% on the identical identical foundation from 2022 to $525,000, whereas there’s been a 25.9% lower within the variety of single-family dwelling gross sales, Warren Group figures present.
In a balanced market, it will take about 4 to 6 months to burn via all of the accessible properties on the market. In Massachusetts, it will take simply two, favoring the vendor, Norton mentioned.
“Our market right now is wildly imbalanced,” she mentioned. “If we started to see the home price drop, that would be good news for the buyer, but even so, there’s still not many homes to buy.”
Source: www.bostonherald.com”