The median price of a single-family home in Massachusetts increased 12 percent during the first six months of the year compared to the same period in 2012, The Warren Group, publisher of Banker & Tradesman, reported July 23, 2013.

The median price of a single-family home during the first half of the year stood at $315,000, up from $281,000 during the first half of 2012. Home prices increased almost 9 percent in June to $350,000, up from $321,800 in June 2012. June marked the ninth consecutive month of year-over-year home price increases, and the highest median price since August 2007. Quarterly home prices increased more than 10 percent to $330,000, up from $299,700 during the second quarter 2012.

Condominium prices also have increased year to date. The median price of Massachusetts condos stood at $284,000 through June, an increase of 3 percent from $275,000 during the first six months of 2012. The median selling price for a condominium in June was $320,000, an increase of 3.2 percent from $310,000 in June 2012. The second quarter median condo price rose 2.4 percent to $302,000 from $295,000 in the second quarter 2012.

Some in the Massachusetts real estate industry are concerned that another housing bubble is forming, but, despite the increase in home prices, overall homes remain affordable; however, without more modest increases in home prices over the next six to 12 months, many potential Massachusetts first-time home buyers will be priced out of the real estate market. Of course mortgage interest rates will pay a role regarding affordability. 

Massachusetts Single-family Home Sales Increase

Massachusetts single-family home sales increased 1 percent in June, the second straight month of increases. Home sales increased 6 percent in May. The lack of real estate inventory in Massachusetts has held back sales, especially in cities and towns in the Greater Boston Area. A total of 5,591 single-family homes sold in June 2013, up from 5,535 the previous June. June 2013 marked the best June for home sales since June 2010, when there were 5,662 sales.

Second quarter home sales totaled 13,915, a 2.2 percent increase from 13,616 in the second quarter of 2012. Year-to-date home sales increased 0.12 percent. From January to June, a total of 21,659 single-family homes sold in Massachusetts, compared to 21,633 during the first half of 2012

On the other hand, Bay State condo sales declined in June, falling more than 3 percent from June 2012. A total of 2,189 condominiums sold in June, down from 2,261 the previous year. Year-to-date condo sales increased almost 2 percent to 8,750 from 8,609 during the first six months of June. In the second quarter, 5,679 condos sold, up almost 3 percent from 5,552 during Q2 2012.