BOSTON, May 27, 2015 /PRNewswire/ -- A deficiency in the
number of homes and condos for sale in many Greater Boston communities led to a drop in
sales activity during April, while median selling prices continued
to climb on an annual basis, according to data issued by the
Greater Boston Association of Realtors® (GBAR).
Sales of detached single-family homes declined 9.5 percent on an
annual basis from 862 homes closed last April to 780 in
April 2015. It's the lowest
April sales total since 2009 when 702 homes sold. The
sales decrease was even more pronounced in the condo market, as
sales slid 23.5 percent over the past year, from 867 condominiums
sold in April 2014 to 663 this
April. This is the sixth consecutive month and eleventh time
in the past 12 months condo sales have declined on an annual
basis. The last time fewer condos sold in April was 2011 when
653 units closed.
While weather was a factor in last month's sales slowdown since
buyers' ability to view properties was hampered by February's heavy
snow, a lack of listings is the bigger issue to impact the market,
notes GBAR President David McCarthy,
owner of Keller Williams Realty Boston Metro.
"There's just not enough inventory to keep up with demand.
We're seeing huge crowds at most open houses, multi-offers on
many properties, and homes priced right are going under agreement
in a matter of days," he said.
In fact, listings for both single-family homes and condos are at
their lowest point in over a dozen years. The inventory of
single-family homes slid for a thirty-eighth consecutive month in
April, declining 17 percent on an annual basis to 2,964 homes,
while condo listings dropped 18 percent over the past 12 months to
1,530 units for sale.
As a result, home values are on the rise. The median
selling price for detached single-family homes rose on an annual
basis for a seventh consecutive month in April to a new record high
price for the month of $470,000.
That's a 6.8 percent increase from the median price of
$440,000 in April 2014, and a gain of 8.7 percent from a
median of $432,250 in
March.
Additionally, the condominium median selling price improved for
a sixth consecutive month, climbing 10.8 percent from $397,000 last April to a new record high price
for April of $440,000 this
year. However, on a month-to-month basis, the median price
slipped 2 percent from the all-time high monthly median selling
price of $449,000 set in March.
"The long winter may have delayed the start of spring selling
season, but there's every indication the market will continue to
heat up with the temperatures," McCarthy asserted. "The local
economy is adding jobs, mortgage rates remain near record lows, and
property values are appreciating steadily once again. I'm
optimistic sales will rebound and that the next few months will be
very busy," he added.
To that point, pending sales of detached single-family homes in
Greater Boston rose 15 percent in
April from year ago levels to 1,700 homes put under agreement, the
most for any month since May 2013
when 1,753 homes were placed under contract. In addition, in
the condo market, pending sales climbed 8 percent in the past year
to 1,332 in April 2015, the highest
total for any month since May 2007
when 1,341 condos went under agreement.
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SOURCE Greater Boston Association of Realtors