Boston’s fast-paced housing market showed no signs of slowing down in May as buyer demand continued to outpace historically low inventory levels, according to the latest Massachusetts Association of Realtors report.
Fueled by low mortgage rates, the trend in the Bay State is being seen across the country, as inventory continues to drive asking prices.
Year over year, both single-family homes and condominium sales were up 20.6% and 89.9%, respectively. The median sales prices of homes and condos both increased 25%, while the median price of condos topped $500,000 for the first time ever. Prices of single-family homes also hit an all-time high, according to the report.
On the listing front, condo listings increased 12.9% in May, while single-family home listings dipped by .1%. Despite the increase, condominium listings were at their lowest level since MAR began reporting data in 2004.
Homes spent less time on the market last month as both single-family homes and condos sold faster in May than ever before. Single-family homes were on the market an average of 29 days and condos an average of 36.
“As the weather heats up and pandemic restrictions continue to ease, more prospective home buyers are entering the market than we’ve seen in the past year,” MAR President Steve Medeiros said in a release. “The spring usually brings new construction homes to the market — however, increasing material and labor costs, along with supply chain challenges, are subsequently delaying builds and increasing costs for builders and homebuyers, further compounding inventory constraints. With the easing of COVID-19 restrictions in many states, we’re optimistic that these supply chain shortages and corresponding high costs will level out.”