The Massachusetts Association of REALTORS (MAR) reported that this month’s data supports the sustained 2021 trend of increasing sale prices for the few homes available on the market. Closed sales on single-family homes rose a total of 27.1 percent while sales on condominiums increased 60.4 percent, compared to June of 2020.
MAR data provided the following key indicators for June:
• Median sales prices hit record levels again in June; The median price for single-family homes was $578,500, an increase of 27.1 percent, and condominium prices rose by 25 percent to $500,000 as compared to June 2020 sales.
• Inventory for single-family homes are down 51.6 percent, a record low, and condos are down 37.9 percent from June of the previous year.
• With the steady decline in available properties, home builders are trying to meet demand; new residential construction projects housing starts are up 3.6 percent from April to May, according to the Commerce Department, indicating that relief may be in sight in the post-pandemic future.
Buyers are desperate to get into homes and while some are forced to wait this market out, those who are able to often bid thousands over asking. Low interest rates and limited inventory continue to fuel record high sales prices.
“The current market is creating barriers for first-time homebuyers, who are new to this process and find themselves making multiple offers before securing a home,’’ said Steve Medeiros, 2021 President of MAR and REALTOR at Keller Williams Realty. “For reasons such as the market conditions listed above, MAR is a strong advocate for wider adoption of First-Time Homebuyers Savings Accounts (FHSAs), which can save homebuyers an average of $50,000 and encourage prospective buyers to be safe when making offers and avoid settling due to minimal choices. This record low affordability is precisely why MAR lobbies for fair legislation and home buyers’ rights.”