Is Massachusetts Real Estate Inventory Improving for Home Buyers?

As Massachusetts home prices continue to rise, homeowners are waking up to the opportunity of selling their homes for a good price.

Home buyers, especially first-time home buyers, don't want to hear news about rising real estate prices, but there is a silver lining to the home price increases over the last couple of years. Previously underwater homeowners are now able to sell. More sellers means that the painfully tight inventory situation home buyers have faced since the beginning of 2013 – and the accompanying bidding wars – should ease over the coming months in most communities. It already has eased in some communities. 

Despite the fact that overall Massachusetts real estate inventory year over year continues to decline, the number of new single-family listings in July increased 7.6 percent compared to July 2013, according to data compiled by the Massachusetts Association of Realtors. July marked the third straight month of year-over-year increases in new listings. New condo listings also increased in July, up 4.7 percent compared to July 2013. 

Inventory for single-family houses has declined for 29 straight months on a year-over-year basis. The number of available condominium units has decreased for 45 straight months. 

Sales of Massachusetts single-family homes and condos decreased in July, and median prices also declined, according to data compiled by the The Warren Group, publisher of Banker & Tradesman.

A total of 5,688 single-family homes sold statewide in July, down 4.2 percent from the 5,940 sold during July 2013. July marked the first time single-family home sales decreased in the month of July since 2010 when there was a 27.6 percent decrease year over year. From January to July, home sales were down 2.3 percent, with 26,965 homes sold in Massachusetts compared with 27,602 houses sold during the same seven-month period in 2013.

The median price of a single-family home increased 1.7 percent in July to $355,000 from $349,000 in July 2013. July's price increase was the 22nd consecutive month of year-over-year median price increases. The median price for homes sold January through July was $335,000, up 4.7 percent from $320,050 during the same period last year.

Condominium sales declined 4.3 percent July. A total of 2,235 condo units sold in July, down from 2,336 sales in July 2013. Through July, condo sales were up 6.7 percent, increasing to 11,827 from 11,080 during the same period last year.

The median condo price rose 5.5 percent in July. The median selling price was $327,000, up from $310,000 in July 2013. During the first seven months of the year, the median price of condos was $315,000, up 8.6 percent from $290,000 during the same period in 2013.