Single-family home and condo sales in the Bay State dropped significantly in October, as median prices continued to climb.
Massachusetts single-family home sales fell 21.2% year over year as shrinking inventory levels and record-high prices continued to hold back buyers.
The median sale price marked another all-time high for October at $500,000, up from $455,000 last year and up 28.5% from October 2019’s $389,000 price.
Warren Group CEO Tim Warren said at first glance, the casual observer could think a 21.2% decline in October single-family home sales would be cause for concern, but that’s not necessarily the case.
“I would point out that the second half of 2020 was an extraordinary six months for home sales due to the disruption to the 2020 spring market by COVID-19,” Warren said in a press release. “October sales this year beat the number in October 2019 and every other October all the way back to 2004. Somehow, despite low inventory, high prices and rising interest rates, homes keep selling at a pretty good clip, and prices continue their upward climb.”
Condominium sales also declined in October, falling 15.8% to 2,089, compared to 2,482 last year and down 1.4% from October 2019. Last month, the median condominium sale price rose 3.7% to $425,000, a new high for the month. The median condo price was up 14.9% from October 2019.
“Our three-year condo sales comparison followed trends similar to single-family homes – there was a massive spike in activity in October 2020, but activity has more or less settled and returned to seasonal norms,” Warren said.