The number of single-family homes for sale in Massachusetts has decreased 77 of the last 78 months, the Massachusetts Association of Realtors (MAR) reported August 22, 2018.
Massachusetts single-family home inventory declined 15.2 percent in July to 14,332 available houses compared to 16,903 homes on the market in July 2017. July 2018 had the fewest available homes for sale of any July since the MAR began tracking real estate inventory in 2004.
Statewide the number of months of supply of single-family homes fell 14.3 percent to 3.0 months from 3.5 months in July 2017. In many communities in the Boston area, the number of months supply of inventory is about half the state average. Approximately six months of inventory is considered a balanced market between home buyers and home sellers.
Condominium inventory plunged 20.3 percent to 3,721 units on the market compared to 4,671 available condos in July 2017. The number of months supply of inventory dropped 20 percent to 2.0 months compared to 2.5 months in July 2017. Condominium inventory has been down or flat for 29 of the last 30 months. July 2018 also had the fewest available number of condos for sale of any July since the MAR began compiling such data.
On a more positive note for homebuyers, the number of new single-family homes and condominiums to hit the market increased in July. Single-family listings increased 6.7 percent, and condo units rose by 1.5 percent.
The record low amount of inventory has continued to push up home prices in Massachusetts. The median price of a single-family home jumped 7.2 percent to $423,250 from $395,000 in July 2017.
The median condo price rose to nearly $400,000 in July. The median price of a condominium increased 7.8 percent to $398,950 compared to $370,000 in July 2017. Both condominium and single-family home prices have been up or flat for 32 of the last 33 months.
Despite higher home prices, homebuyers continued to purchase property in July. Single-family house sales increased 3.3 percent and the number of condo units closed inched up 1.3 percent.