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Massachusetts Home Buyer Guide

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Homebuyers Paying More for Homes in Massachusetts Through October 2021

Nov 26, 2021 6:04:04 PM

Massachusetts single-family home sales were flat through October 2021, but median home prices surged double digits during the first 10 months of the year.

First-time homebuyers in MassachusettHome sales rose only 0.1 percent from January through October, up just 29 houses sold to 46,753, according to data compiled by the Massachusetts Association of Realtors (MAR). The number of single-family homes closed plummeted 22.5 percent in October to 4,839 from 6,244 in October 2020.

The median home price was up 16.5 percent to $530,000 statewide through October compared to $455,000 the same January through October period in 2020. In October, the median price of a single-family home was $520,000, a 10.6 percent increase from $470,000 in October 2020.

Statewide, the number of months supply of single-family inventory fell 35.3 percent in October to 1.1 months compared to 1.7 months October 2020. The number of months supply of inventory is the number of homes for sale – at the end of a given month – divided by the average monthly pending sales from the last 12 months.

The number of new listings fell by 19.2 percent in October to 5,258 from 6,510 in October 2020. New listings are a measure of how much new supply is coming onto the market from sellers. MAR calculates new listings by counting all listings with a list date in the reporting period.

Massachusetts condominium sales and median prices were up significantly through October. There were 21,479 condos sold, a 22.7 percent increase from 17,504 closed sales during the first 10 months of 2020. Condominium units closed in October fell 12 percent to 1,957 compared to 2,225 closings in October 2020.

Like single-family home prices, the median condo price rose double digits through October. Homebuyers saw condominium prices 12 percent higher ($470,000) than the same 10-month period in 2020 ($419,492). Median condo prices increased 5.1 percent to $431,000 in October from $410,000 in October 2020.

The number of months supply of condominium inventory plummeted 53.3 percent in October 2021 to 1.4 months from 3.0 months the previous October.

The number of new condo units listed for sale fell by 25.0 percent in October to 2,237 from 2,983 in October 2020.

MAR's "Housing Affordability Index" indicates that single-family and condominium homes are less affordable for homebuyers. Through October, the affordability of a single-family home in Massachusetts dropped 17.5 percent to 80 compared to 97 in October 2020. Condo affordability fell 14.3 percent to 90.

The Housing Affordability Index is a measure of how affordable a region's housing is to home-buying consumers. A higher number indicates greater affordability. MAR bases the index on interest rates, median sales price, and average income. For example, an index of 105 means the median household income is 105 percent of what is needed to purchase a median-priced home with prevailing interest rates. At an index of 80, single-family home affordability in Massachusetts is a significant concern.

After rising the week ending November 17, 2021, average U.S. mortgage interest rates were unchanged, heading into the Thanksgiving holiday. The 30-year, fixed-rate mortgage averaged 3.10 percent, with 0.7 points, for the week ending November 24, 2021, according to Freddie Mac's weekly Primary Mortgage Market Survey.

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Topics: Real Estate Market, Massachusetts Home Prices, Massachusetts Association of Realtors

   

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