Single-family home and condo sales continued to decline last month due to rising interest rates, limited inventory and inflation concerns, according to a new Warren Group report. 

The Warren Group’s August sales report found single-family home sales fell 9.9% to 5,732 from 6,363 a year ago. Inventory issues are having an impact on sales: Since Jan. 1, there have been 35,636 homes for sale in the Bay State, down 11.3% from the same time last year. 

Warren Group CEO Tim Warren says it’s the fewest single-family home sales his company has seen in August since 2014. 

“Interest rates are rising, and the number of homes for sale is falling, which are two of the biggest factors that contributed to the decline,” Warren said. “Add concerns about inflation, declines in the stock market and a weak economy, and consumer confidence is taking a hit. This puts many potential homebuyers on the sideline. I fully expect to see year-over-year declines in the single-family sales volume throughout the remainder of 2022.” 

Similar to July, despite the drop in sales, median sales prices once again continued to climb. 

Last month, the median single-family home price rose 7.8% from last year to $555,000. The median sales price is up from $535,000 in August2021.

Meanwhile, condominium sales posted another large decline in August; prices fell below $500,000 for the first time in five months. 

August condominium sales fell 18% to 2,298 from 2,803 a year prior, while the median sale price increased 2.1% to $480,000, a new all-time high for the month, according to the report. 

For the first eight months of 2022, 16,782 condos sold in Massachusetts, down 14.4% from a year ago. 

“This is the first time the median condo price dipped below $500,000 in five months and the pace of increase in median price is slowing dramatically,” Warren said. “This is likely the result of rising interest rates making it much more expensive to borrow money and prospective buyers unwilling to saddle themselves with exorbitant monthly payments.”