Rising homeownership costs have potential buyers adjusting their budgets, and they’re driving many to move away from the more expensive, larger cities and look to smaller areas where the cost of living is more affordable, according to a new report.

The Massachusetts Association of Realtors April 2022 housing report found April was the first time this year the impact of inflation and rising interest rates were felt in the Bay State. 

Last month the average 30-year fixed mortgage rate exceeded 5%, its highest since 2011. And according to the National Association of Realtors that caused a 2.7% drop in existing home sales from March and a .2% drop in pending home sales — the fifth consecutive month of declines. 

Dawn Ruffini, 2022 MAR president and Realtor at RE/MAX Connections, said the rising mortgage rates are limiting buying activity and will slow the increase in housing prices. 

“April tends to be an indicator for the spring housing market, and though we are not yet in a buyers’ market, competition for housing may begin to cool, and we are hopeful that we will soon see a healthier market,” she said. 

Last month, the median price for a single-family home was up 12.4% year over year to $590,000. Single-family home listings, meanwhile, were down 11.6% compared to the previous year. 

As has been the trend, condominium prices also rose in April to $540,000, up 11.3% from 2021, while condo listings fell 20.3% from last year. 

The report also found single-family closed sales fell 15.7% compared to last year, while closed condo sales dropped 15%.