Low inventory continued to plague the Bay State’s summer real estate market in May, as new listings and closed sales declined again.
The Massachusetts Association of Realtors May housing data report found that while inventory remained tight, building new inventory to rebalance the market is becoming even more critical.
July will mark two years of consistent closed sales declines in Massachusetts as median sales prices continue to rise. The impact on both is fueled by inventory constrictions, which are creating serious competition for local buyers.
David McCarthy, 2023 MAR president, said many current homeowners are hesitant to enter the market because they’re unwilling to abandon the lower mortgage rates they locked in several years ago and “wade into the fray.”
“Homes are moving quickly, and we’re hopeful that some slight leveling off where the median price is concerned will help create an influx of new existing home inventory, but a high volume of new builds in a variety of categories will be necessary to truly balance the Massachusetts housing market,” he said.
Last month, the median price for a single-family home in Massachusetts increased 0.2% from May 2022 to $616,450, while new, single-family home listings decreased by 18.7%.
Condominium prices also rose slightly in May, up 1.1% to $543,870, while condo listings fell 9.7%.
The report also found that year over year, single-family closed sales fell 22.3% from 2022, while closed condo sales dropped 22.7%.