Home gross sales fell by greater than 10% year-over-year final month whereas November costs hit an all-time excessive, actual property market watchers say.
Sales of each single-family properties and condos dropped by a median of 10.5% when in comparison with 2022, and gross sales this yr are down about 22% from final yr, in keeping with nationwide actual property and transaction information supplier the Warren Group.
At the identical time, the median value for a single-family residence jumped by 8.4% to $579,000 and the median condominium value climbed 5.3% to $500,000.
“Market conditions and trends remained relatively unchanged in November as limited inventory in Massachusetts pushed single-family prices to a new all-time high for the month and sales fell by more than 10 percent on a year-over-year basis,” Warren Group Associate Publisher Cassidy Norton mentioned.
Last month, simply 3,447 single-family properties offered in Massachusetts, down from greater than 3,850 in 2022. That’s the smallest reported single-family residence gross sales quantity seen since November of 2011, in keeping with the Warren Group’s evaluation. Condo gross sales slumped from 1,658 final November to 1,487 this yr.
“Condo activity was nearly lockstep with single-family trends in November,” Norton mentioned. “Condo sales were down by more than 10 percent on a year-over-year basis while median sale prices reached new all-time highs for the month.”
Housing market turmoil comes as mortgage charges retreat barely from their October excessive of seven.79%, the best they’ve been since late 2000. Last week, mortgage purchaser Freddie Mac introduced rates of interest for a 30-year fastened charge mortgage had dipped to six.95%.
High rates of interest pushed by the Federal Reserve on their key charge are aimed in the direction of tamping down inflation, however have resulted in a surge in mortgage prices. Mortgage charges rose above 6% final yr together with 11 Fed charge hikes, and have remained there since, pushing some residence patrons out of the market. Just two years in the past, rates of interest have been nearer to three%.
Federal Reserve Chairman Jerome Powell has indicated the central financial institution could start slicing charges in 2024, however in keeping with the Warren Group, the robust housing market is unlikely to alter anytime quickly.
“I don’t expect the pressure building behind this pent-up demand to be relieved this year; I think we can expect to see more of the same in the coming months due to elevated interest rates. However, the Federal Reserve has indicated it intends to reduce interest rates in 2024, which may help relieve some of that pressure,” Norton mentioned.
Gov. Maura Healey has mentioned restricted housing provide is the strongest headwind going through the Bay State, and has provided a $4 billion housing bond invoice — the most important such funding in state historical past — as a method of fixing the restricted housing inventory downside.
Healey’s plan has been sitting in impartial whereas the Legislature takes the top of the yr off, however on Monday it acquired the backing of U.S. Sen. Elizabeth Warren, who mentioned the scenario will worsen with out intervention.
“The problem is bad and the problem is getting worse,” Warren mentioned. “Do you think that housing is in short supply in Massachusetts right now? Do you think that rents are already rising like a hot air balloon? Well buckle up for a rough ride.”
Herald wire providers contributed to this report.
Source: www.bostonherald.com”