BOSTON, July 26, 2016 /PRNewswire-USNewswire/ -- The Greater Boston housing market experienced record-high sales activity this June as low mortgages rates, rising home values and a healthy local job market kept buyer demand strong, according to data from the Greater Boston Association of REALTORS® (GBAR).
In June, sales of detached single-family homes improved on an annual basis for the thirteenth consecutive month increasing 1.4 percent from the 1,870 homes sold in June 2015 to 1,916 this year. This represents a new record-high total of single-family home sales for the month of June in Greater Boston, eclipsing the previous monthly high of 1,888 from June 2004. Condominium sales remained flat, slipping 0.1 percent last month, with 1388 closed sales compared to 1,389 closed condo sales in 2015. Falling short of last year's total by one unit sold; last month's sales total represents the third highest total in June for Greater Boston, with the high coming in 2005 with 1,546 condo units sold.
"The desirability for homeownership in Greater Boston is extremely high, and with a thriving local job market and economy, we've seen buyer motivation and consumer confidence continue to trend upwards and that is reflected by these high sales totals," said GBAR President Andrew Sarno, Broker Associate with RE/MAX Andrew Realty Services in Medford. "Consumers are taking advantage of the increased equity from the rising home values and low mortgages rates as well, so despite higher median sales prices; the market has remained very active."
The single-family median sales price rose a modest 4.5 percent from $560,000 in 2015 to an all-time record high median sales price of $585,000 last month. This represented the twenty-first consecutive month that the single-family median sales price has improved. Similarly, in the condo market median sales price increased 9.8 percent to an all-time high $505,000 up from $460,000 in June 2015.
Lack of inventory continues to have an effect on the Greater Boston housing market, as numbers in both markets fell significantly in June. Single-family home inventory dropped 18.5 percent from 3,698 in June 2015 to 3,015 last month. Likewise, inventory of condos fell 24.6 percent to 1,457 last month compared to 1,933 condos in June 2015.
"As demand continues to exceed supply, many buyers have found themselves in multiple offer situations with the added pressure of buying before further potential price increases," noted Sarno. "Despite this, buyer activity remains high, and although pending sales declined slightly, numbers remain well above historical averages for the month of June."
Pending sales in June declined in both markets. The single-family home market pending sales dropped 5 percent from 1,788 in June 2015 to 1,698 last month, while the condo pending sales fell 10.7 percent to 1,238 from 1,386 in June 2015.