October single-family home sales in Massachusetts fell double digits as the market continues to be impacted by tightening inventory and rising interest rates, according to a new Warren Group report.
The Warren Group’s October sales report found single-family home sales fell 21.5% to 4,183 from 5,327 a year ago, marking the largest year-over-year decline in activity so far this year.
Warren Group CEO Tim Warren said dwindling inventory, rising interest rates and the high cost of consumer goods continued to have an impact on homebuying activity across Massachusetts in October.
“In fact, this is the fewest number of single-family home sales for the month of October since 2012,” he said. “It’s also important to note that even though the median sale price continued to increase, the 4% gain was very modest when compared to the price hikes we’ve been seeing over the last few years.”
As has been the pattern over the past few months, despite fewer sales, median sales prices rose in October, to a new all-time high for the month, according to the report.
Last month, the median single-family home price rose 4% from last year to $520,000. The median sales price is up from $500,000 in October 2021. The report noted despite it being a new high for the month, the increase was the smallest year-over-year increase since June 2020.
Since January, 44,697 homes sold, down 12.9% from the first 10 months of last year. During the same period, the year-to-date median single-family home price rose 7.8% to $550,000.
Meanwhile, condominium sales posted another large decline in October, marking the 14th month in a row that sales fell on a year-over-year basis. October condominium sales fell 17.9% to 1,729 from 2,105 a year prior, while the median sale price increased 12.7% to $479,000, a new all-time high for the month, according to the report.
“The spike in the median condominium price is likely the result of prospective buyers turning to the condos as an alternative to single-family homes,” Warren said.
Since January, there have been 20,432 condos sold, down 15.6% from the first 10 months of 2021, with a median sale price that’s up 7.7% to $491,000.