After two years of record-setting activity, the Massachusetts real estate market is showing signs it might be cooling, according to a new report.
The busy summer market is here according to the Massachusetts Association of Realtors May housing statistics report that found despite rising home price and mortgage interest rates, Bay State single-family home and condominium sales increased again for the third month in a row.
With existing home sales falling 24% and pending sales dropping 3.9% nationally from April, the slowdown has allowed supply to rebound, according to the report, with inventory increasing 10.8% month of over month. Despite the rebound, available homes for sale remain down 10.4% from last year.
Dawn Ruffini, MAR president, said the biggest issue the market is facing is the shortage of houses.
“Until we are able to increase supply, more households are going to continue to be priced out of the market,” Ruffini said. “We need to act now to expand housing access as it will, in turn, reduce home prices and allow more people to enter the market.”
Last month, the median price for a single-family home was up 12.3% year over year to $617,750 and new single-family home listings rose 6.2%.
Condominium prices also rose in May to $531,501, up 5.1% from 2021, while condo listings fell 4.9% from last year.
The report also found single-family closed sales fell 7.8% compared to last year, while closed condo sales dropped 12.4%.