The number of single-family and condominium homes for sale in Massachusetts plunged in July compared to July 2022, according to data compiled and released by the Massachusetts Association of Realtors (MAR) earlier this month.
Available single-family homes statewide dropped 44 percent in July to 4,585 from 8,206 on the market in July 2022. There were only about five weeks of inventory in July. About five to six months of inventory is considered a balanced market between home buyers and sellers.
The MAR also tracks "new listings," a measure of how much new supply is coming onto the market from sellers. It's calculated by counting all listings with a listing date in the reporting period. In July, new listings declined 27 percent and have fallen 25 percent through the first seven months of 2023.
Tight inventory continues to fuel price increases, with the median price of a single-family home statewide clocking in at $640,000, a 6 percent increase from July 2022. In the 64 cities and towns comprising the Greater Boston Association of Realtors (GBAR), the median price in July reached $910,000, an 8 percent rise year over year.
With fewer homes available, single-family house sales dropped 24 percent to less than 3,800 statewide. Sales in Greater Boston dropped 23 percent to a little more than 1,000.
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Massachusetts condominium inventory fell 38 percent in July to 2,324, and about six weeks of supply were available at the end of the month.
New condo listings dipped 18 percent to just 1,725 compared to 2,093 in July 2023. New listings have fallen 21 percent through July compared to the same seven-month period in 2022.
With few units on the market, condominium prices rose 7 percent statewide in July to $569,000 from $530,000 in July 2022. In Greater Boston, the median condo price increased to $735,000, an 8 percent increase from $682,000 in July 2022.
Without sufficient inventory, condominium sales fell 15 percent statewide in July to 1,636 from 1,929 in July 2022. Condo sales nosedived 17 percent in GBAR's 64 cities and towns to less than 1,000.
New Hampshire Inventory Also Declines
There were nearly 700 fewer single-family homes for sale in New Hampshire in July, a 28 percent drop compared to July 2022, according to data compiled by the New Association of Realtors.
Scarce inventory led to price increases and a plunge in sales. The median house price rose 7 percent to $480,000. Single-family home sales dropped 23 percent to only 1,142 in July.
In July, condominium sales fell 14 percent to fewer than 350, the median condo price rose 13 percent to $384,950, and the number of units for sale decreased by 19 percent.
Rhode Island Sales Down, Prices Up
Only 670 single-family homes sold in July in Rhode Island, a 28 percent plunge from 928 in July 2022, according to Rhode Island State-Wide Multiple Listing Service data. Condominium sales fell 29 percent to 139.
The median sales price of a house rose 7 percent to $440,000 in July from $410,000 in July 2022. The median condo price rose 13 percent to $359,900.
While more houses were on the market in July than in June, single-family inventory dropped 29 percent from July 2022. Home buyers had 8 percent fewer condominiums to choose from in July.
Prospective home buyers in Massachusetts, New Hampshire, and Rhode Island must stay informed about the current trends in the real estate market and seek professional, loyal guidance to navigate the present competitive landscape and avoid costly mistakes.