Massachusetts single-family home sales declined 5.9 percent in February compared to February 2013, the Massachusetts Association of Realtors (MAR) reported March 25, 2014, citing a lack of inventory as the cause of the slowdown in home sales.
Massachusetts median home prices increased 9.2 percent in 2013, much more in some sought-after city and towns, but it appears price growth may be slowing in 2014, as higher interest rates and home prices have lessened affordability.
There were 2,084 detached single-family homes sold in February compared to 2,215 homes sold the same time last year. On a month-to-month basis, home sales were down 25 percent from 2,725 homes sold in January 2014. February marked the seventh straight month-to-month decrease in home sales; however, MAR claims a drop in single-family closed sales from January to February is typical. Closings in February are usually a result of homes put under agreement around the holidays, so a decline in home sales in February makes sense. The winter weather certainly hasn't put homeowners in the mood to list their homes for sale.
With single-family home inventory scarce and prices rising, condominiums are becoming a more popular alternative. There were 903 condominiums sold in February, an increase of 1 percent from the 894 condos sold in February 2013. Year-over-year sales of condominiums have increased 25 out of the last 26 months, according to MAR. On a month-to-month basis, condominium sales were down 17 percent from the 1,058 condominiums sold in January.
The median condo price in February was $283,000, an increase of 9.1 percent compared to $259,450 in February 2013. February marked the ninth straight year-over-year median price increase for condominiums. On a month-to-month basis, the February median selling price declined 5.7 percent from $300,500 in January 2014.
Home sales and median price data is compiled by MAR through local multiple listing services (MLS). The Warren Group, publisher of Banker & Tradesman, compiles sales and price data from the state's registries of deeds.
According to The Warren Group, Massachusetts single-family home sales declined 4.1 percent in February, and the median home price increased 2 percent. Condo sales increased 6.5 percent in February compared to February 2013, and the median condo price jumped 12.4 percent.
The inventory of single-family homes in Massachusetts as of February 28, 2014 decreased 18.9 percent from February 2013 (15,739 listings in 2014 compared to 19,402 listings in 2013), according to MAR. The number of listings translates into 3.7 months of supply in February 2014, a decline from 5.0 months of supply in February 2013 and down from 3.9 months in January 2014. February marked the 24th straight month of single-family home inventory declines.
The number of new listings added to the market of single-family homes in February increased 4.3 percent compared to February 2013. There were 4,742 new listings in February compared to 4,547 in February 2013.
The inventory of condominiums on the market in February plunged 27 percent compared to the year before (4,407 new listings in 2014 from 6,047 new listings in 2013), a number of listings that translates into 2.5 months of supply, which is down from 3.9 months in February 2013 and down from 2.6 months in January 2014.
The number of new listings added to the Massachusetts condo market in February decreased 3.6 percent from February 2013, with 1,861 new listings in 2014 compared to 1,930 new listings in February 2013.