Massachusetts Home Buyers Facing Higher Prices, Lack of Inventory

The lack of real estate inventory had Massachusetts home buyers paying more for homes in March 2013 compared to March 2012.

The median price for single-family homes sold in March rose more than 8 percent to $285,000 from $263,000 a year earlier, The Warren Group, publisher of Banker & Tradesman, reported April 24, 2013. March marked the sixth consecutive month that monthly home prices have increased year-over-year. The first quarter median selling price was $282,500, a 10.6 percent increase from $255,500 in the first quarter of 2012.

The inventory of single-family homes as of March 31, 2013 decreased 29.8 percent from March 2012 (28,159 listings in 2012 to 19,761 listings in 2013), the Massachusetts Association of Realtors (MAR) reported April 24, 2013.  To date, March saw the biggest monthly year-over-year decrease in real estate inventory since MAR has tracked such data.

The number of single-family homes on the market in Massachusetts translates into 5.1 months of inventory in March 2013, down from 8.6 months of supply last year, but slightly higher than the 5.0 months in February 2013.  March marked the 12th straight month of inventory declines in the Bay State.

The lack of inventory did slow sales statewide for the second consecutive month in March. Single-family home sales dropped 3.6 percent to 3,100 in March, down from 3,215 in March 2012, The Warren Group reported. Home sales in the first quarter also were down 2.1 percent to 7,849 from 8,017 sales in 2012’s first quarter.

MA condominium sales also dropped for the second straight month in March. Condo sales declined more than 2 percent to 1,211 from 1,240 in March 2012. The first quarter saw 3,083 condo sales, an increase of nearly 1 percent from 3,057 sales in March 2012. 

The median price for condos sold in March was $261,000, up more than 1.5 percent from $257,000 in March 2012. The first quarter median condo price also was up more than 1.6 percent to $250,000 from $246,000 during the same quarter las year.

Condominium inventory in March decreased 34 percent compared to the year before (9,908 listings in 2012 to 6,543 listings in 2013), MAR reported. The 6,543 listings translate into 4.3 months of supply, down from 7.9 months in March 2012, but up slightly from 4.2 months in February 2013. 

Single-family homes stayed on the market an average of 124 days in March 2013 compared to an average number of days  on the market of 131 days in March 2012.  Condos remained on the market an average of 99 days, down from an average of 123 days in March 2012.  On a month-to-month basis, days on market for single-family homes were down from 125 days in March 2013 while condos declined from 110 days.