The median sales price of a single-family home in the Bay State dropped again last month, as the market continues to show signs it’s cooling down.

The Massachusetts Association of Realtors’ August 2021 housing statistics report found that while the median sales price continued to drop in August, it does remain higher than last year. 

The median price of a single-family home rose 12.2% to $552,000 and 12.4% for condominiums to $480,000, when compared to August 2020. The single-family median sales price declined slightly from both June and July, while the median price of a condo remained the same as in July.  

Listings also saw less activity than the prior month as new single-family home listings dropped 8.4% and condo listings decreased 14.7% from a year prior. 

The rental market is starting to feel the impact of the inventory shortage as builders struggle to meet the demand as they continue to face supply shortages, longer lead times and skyrocketing materials prices. The supply and demand imbalances have first-time homebuyers renting, increasing demand for those units and again driving up prices. So far this year, the national median rent rose 11.4%, according to the report.

“We are seeing a steady increase in demand for starter homes, and with challenges such as labor shortages, rising materials costs and supply-chain setbacks, the construction industry is unable to keep up, many are turning to renting as a solution,” said MAR President Steve Medeiros in a release. “For the first time in about a year, we’ve seen a rise of inventory and are already seeing an uptick in post-Labor Day listings. With these indicators, we’re optimistic that the fall market will be a busy one and become slightly more buyer-friendly.”