Massachusetts Home Prices Rose 2.5% in 2014, Sales Declined 2%

Despite Massachusetts home buyers actively purchasing homes in December, single-family home sales declined 2 percent in 2014, according to the latest report issued by The Warren Group, publisher of Banker & Tradesman. 

The 9.6 percent increase in single-family home sales in December was the largest in 2014. A total of 4,209 houses sold in Massachusetts in December compared to 3,841 in December 2013.  In 2014 there 48,963 homes sold compared with 49,992 sold in 2013. Single-family sales increased 1.4 percent in the fourth quarter, rising to 12,224 compared to 12,058 during the fourth quarter of 2013.

The median price of a single-family house increased 2.5 percent in 2014 to $330,000 compared to $322,000 in 2013. Median home prices increased 2.1 percent in December to $320,000, and increased nearly 3 percent in the fourth quarter to $320,000. Tight inventory, especially in and around Boston, has kept upward pressure on home prices over the last 18 to 24 months. 

Condominium sales increased 0.7 percent in 2014, increasing from 20,614 units from 20,468 units sold in 2013. Unlike single-family homes, condo sales in December declined 8 percent. There were 1,718 units sold in December 2013 and 1,587 condos sold in December 2014. The number of condominiums sold in the fourth quarter declined 6.6 percent to 4,749 units. 

The median price of a condominium increased 4 percent in 2014 to $310,000. In December condo prices increased 2.1 percent to $309,000. The median condo price declined 2.1 percent to $295,000 in the fourth quarter.