Home Sales, Prices Remain High Despite Low Inventory In Greater Boston

BOSTON, May 24, 2016 /PRNewswire-USNewswire/ -- Elevated buyer activity, strong consumer confidence and low inventory has led to increased sales and prices of single-family detached homes and condominiums in April throughout Greater Boston, according to data from the Greater Boston Association of REALTORS® (GBAR).

In April, sales of detached single-family homes improved on an annual basis for the eleventh consecutive month increasing 21 percent from the 762 homes sold in April 2015 to 922 this year. This represents the highest single-family home sales total for April since 2010 when there were 975 homes sold. Condominium sales also rose 18 percent last month, from 690 units sold in 2015 to 814 this year. Last month's condo sales number is slightly above average historical condo sales volume of 801 in our market, and the seventh highest total for the month since 2003.

"Throughout the spring, we've seen a steady rise in sales matched by continued price growth as buyer demand in our region remains high," said GBAR President Andrew Sarno of RE/MAX Andrew Realty Services in Medford. "The strong economy and job market, paired with rising home values throughout Greater Boston, has led to an increase in consumer optimism and confidence when buying a home, as evidenced by the rise in buyer activity."

Indeed, median sales prices in both markets increased last month, setting record high prices in our region. The single-family median sales price rose 3.5 percent from $512,250 in 2015 to $530,000 last month. This represented the nineteenth consecutive month that the single-family median sales price has improved. The condo market median sales prices increased 10 percent to $480,000 up from $436,000 in April 2015.

"Rising sales prices can often reflect the lack of supply in the region, which holds true for last month," added Sarno. "The prevalence of low inventory in our market has created a sense of urgency among buyers, and that's led to many multiple offer situations which is benefitting sellers in the form of higher home values and steady price appreciation."

As in recent months, pending sales continued to rise in both markets in April. In the single-family detached home market pending sales rose from 1,547 to 1,681 in 2016, indicating an 8.7 percent increase and condo market pending sales increased 6.7 percent from 1,274 in 2015 to 1,359 last month.

"Although demand continues to exceed supply, we've seen pending sales continue to rise thus far in 2016," said Sarno. "Despite rising costs due to limited inventory, low mortgage rates have helped buyers afford housing in our area thus increased sales activity last month."

Unlike March, inventory numbers in April declined slightly in both markets and continues to be the main hindrance to the Greater Boston housing market. Single-family home inventory declined 3.2 percent from 2,988 to 2,891 listed homes in 2016, while condo inventory fell 15.8 percent from 1,719 to 1,448 available units.

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SOURCE Greater Boston Association of REALTORS(R)

Related Links

http://www.gbar.org