Massachusetts Home Buyer Guide

Massachusetts single-family home sales declined for the fourth straight month on a year-over-year basis in May 2014, a 7 percent drop, The Warren Group, publisher of Banker & Tradesman, reported June 25, 2014.

In May, a total of 4,482 single-family homes were sold compared with 4,820 in May 2013. Through the first five months of the year, home sales also declined by 3.8 percent with 15,467 homes sold compared with 16,073 sold during the same period last year.

The consensus among real estate professionals is that the lack of inventory in many Greater Boston Area cities and towns is putting pressure on home sales. Some in the real estate industry feel that list prices don't match reality, and more Massachusetts home buyers are refusing to overpay in many communities, thus slowing sales down. 

The median sales price of single-family homes in Massachusetts increased by 4.7 percent in May to $340,000 compared with $324,600 in May 2013. May was the 20th consecutive month of year-over-year median price increases. Through May, median prices rose by 6.3 percent to $319,000 compared with $300,000 during the same period in 2013.

Condominium sales remained strong in May with a total of 2,146 transactions completed compared with 2,015 in May 2013. May marked the 11th consecutive month condo sales have increased on a year-over-year basis. From January through May, condo sales increased 9.3 percent with 7,166 sales completed compared to 6,557 condominium sales recorded during the first five months of 2013.

The median price of a condominium increased 8.47 percent in May, posting a median selling price of $320,000 compared with $295,000 in May 2013. Through May, condo prices continued to climb, recording a median selling price of $305,000, a 13.0 percent increase from the $270,000 in May 2013. May marked the 16th consecutive month the median selling price of Massachusetts condos increased, year-over-year.

“Condominiums are the strongest part of the market these days. The current median price of $320,000 is the highest of any month in history, proving that smaller spaces, care-free maintenance and urban living are popular these days,” said Timothy M. Warren Jr., CEO of The Warren Group.

The number of new single-family home listings increased 4.1 percent in May, according to data compiled by the Massachusetts Association of Realtors; however, new condo listings declined 3.7 percent in May. Condominium inventory declined 21.5 percent compared to May 2013. Single-family real estate inventory decreased 7.9 percent in May.