Massachusetts single-family dwelling gross sales dropped to their lowest September degree in eight years, extending a months-long pattern whereas costs proceed to rise to new heights, in keeping with a brand new report.
The Warren Group mentioned Tuesday that there have been 4,877 single-family dwelling gross sales final month, 16.2% lower than in September 2021 and the fifteenth straight month with a year-over-year decline.
Meanwhile, the median sale value for a single-family dwelling within the Bay State hit $550,000 in September, a 7.8% enhance over September 2021 and a 16% enhance over September 2020, in keeping with the actual property firm.
Tim Warren, CEO of The Warren Group, mentioned the change in costs has slowed to a “more moderate pace,” noting that the % development has been within the single digits for six months after 2021 noticed solely three months whole with single-digit will increase.
“Single-family sales numbers took another hit in September as limited inventory, economic uncertainties, and rising interest rates continued to weigh heavily on prospective buyers,” Warren mentioned. “In fact, this was the fewest number of single-family sales that we’ve seen in the month of September since 2014. The median sale price is showing a slowdown as well.”
The decline in gross sales was extra pronounced for condominiums, the place the 1,922 gross sales recorded in September 2022 was almost 23% lower than September 2021.
The median gross sales value for a condominium rose to $461,500 in September alone, about 3.7% greater than the identical month a yr in the past and the highest-ever degree for that month, whereas the year-to-date median value crept near the half-million greenback mark at $495,000.
Interest charges have climbed dramatically prior to now yr.
According to Freddie Mac, charges have hit their highest common since 2002.
In its most up-to-date charge survey. the nationwide underwriter reported 30-year mortgages averaging 6.92%, a leap from the earlier week’s 6.66%.
“Rates resumed their record-setting climb this week, with the 30-year fixed-rate mortgage reaching its highest level since April of 2002,” mentioned Sam Khater, Freddie Mac’s Chief Economist.
“We continue to see a tale of two economies in the data: strong job and wage growth are keeping consumers’ balance sheets positive, while lingering inflation, recession fears and housing affordability are driving housing demand down precipitously,” Khater continued. “The next several months will undoubtedly be important for the economy and the housing market.”
Just a yr in the past, a 30-year mortgage was averaging 3.05%.
Source: www.bostonherald.com”