Massachusetts single-family and condo sales declined in December, a trend seen throughout 2022 which resulted in double-digit declines for the year, according to a new Warren Group report.
The Warren Group found Bay State residential real estate sales posted another month of declines in December.
On a year-over-year basis, single-family home sales fell last month, as the market continues to feel the effects of high interest rates, low inventory and economic uncertainties.
The Warren Group’s December sales report found single-family home sales fell 31.7% to 3,838 from 5,622 a year ago, marking the fewest sales of single-family homes in December since 2012.
Warren Group CEO Tim Warren said the single-family home market in December, “finally hit that wall we’ve all been anticipating.”
“For the last few years, housing market activity has been so hot that inventory was unable to keep up – and our numbers reflect that,” Warren said. “Add in economic uncertainties and the fact that mortgage rates are nearly double what they were a year ago, and you have the making for a cooling housing market.”
In December, the monthly median single-family home price grew 2% to $510,000 from $500,000 in December 2021. While it was a new all-time high for the month, according to the report, year-over-year increases have been diminishing over the past three months.
Since January, 52,397 homes sold, down 15.9% from 2021. During the same period, the year-to-date median single-family home price rose 7.8% to $550,000.
Meanwhile, condominium sales posted another decline in December. Last month condominium sales fell 29% to 1,568 from 2,208 a year prior, marking the largest year-over-year decline in 2022. While the median sale price increased 1.4% to $445,500, the smallest year-over-year increase recorded last year.
“Year-end condo market trends were in lockstep with single-family homes,” Warren said. “However, the bright side of the condo market is that there were a number of developments that broke ground in 2022 in major metro areas that will bring additional units to the market in 2023. This should provide additional options for homeownership in the near future.”
In 2022, 23,616 condos sold, down 17.2% from 2021, with a median sale price that’s up 7.7% to $489,000.