Housing prices in Greater Boston softened last month as annual price appreciation slowed, according to the Greater Boston Association of Realtors (GBAR) November housing report.

That weaker sales activity has led to moderation in selling prices as annual price appreciation slowed to its lowest in five to six months. Month over month, median sale prices fell for the fourth month in a row and for three of the past five months for condos, the report found. 

In November, sales of both single-family homes and condos fell to their lowest level for the month in 12 years, while mortgage rates rose to their highest level since 2000 over the fall. Inventory, as has been the story all year, continued to be in short supply. 

November single-family home sales fell 13.1%, year over year, with 784 homes sold, compared to 902 homes sold in November 2022, marking the slowest November for single-family home sales since 2010. Month over month home sales fell 3.6% from October. November also marked the 18th month in a row that single-family home sales fell on an annual basis.

Condominium sales also declined, falling 12.7% from a year earlier, with 630 units sold, compared to 722 in November 2022, marking the slowest November for condo sales since 2011. Month-over-month condo sales fell 2.3%. November was also the 24th month in a row condo sales declined on an annual basis.

GBAR president Alison Socha, and an agent with Leading Edge Real Estate in Melrose, said with mortgage rates reaching their highest level in more than 20 years, the inventory of homes and condos for sale is still tight. Inflation and instability in the financial markets has diminished savings rates and created uncertainty about the  economy. Many prospective buyers and sellers have either lacked the confidence or buying power to enter the housing market this fall.

“Today’s slower sales pace doesn’t reflect actual demand, however, as the number of millennials and Gen Xers in their prime homebuying years is substantial, as is the segment of baby boomers looking to right-size,” said Socha. “Pent-up demand has been growing steadily for two years now and that has our market well positioned for a rebound once the Fed starts to ease up on interest rates.”

The report noted that, despite mortgage rate increases and economic concerts, the number of available properties for sale is still not enough to meet demand, which is continuing to drive up home values. 

In November, median prices of both single-family homes and condominiums hit new highs. 

The median sales price of a single-family home in November rose to $800,000, up 5.3% from November 2022’s $759,500. Condominium sale prices also rose, climbing to $679,000, up 2% from last November’s $666,000.

Socha says even though sales have been fewer this year, the market is still competitive, allowing many to maximize the equity in their homes. 

“The buyer pool may be smaller at this time of year, but the reality is we still don’t have nearly enough listings to meet the demand, and that imbalance continues to put upward pressure on home prices,” she said. 

There was only 1.5 to 2.5 months of inventory supply at the end of November.

Active listings of single-family homes in November declined 14% from 1,354 last year to 1,166. But new listings rose 1.6% during the same period. Condo listings also declined, falling 9.5% from 1,782 last November.

The limited listings have created a market that still favors sellers who last month closed at or near their initial asking price, according to the report. 

A typical single-family home sold for 100.4% of its original asking price in November, while a typical condo sold for 99.4% of the list price, both increasing from last year’s 98.9% and 97.6% respectively.

Despite seller favorability, Socha cautions homeowners to not get too aggressive with their pricing as they head into winter. 

“With many buyers sitting on the sidelines until inventory or affordability improve, pricing is going to be more critical than ever for those looking to sell in the coming months,” Socha said. “In recent months, we’ve seen more price adjustments and homes sitting longer, so especially in today’s high-interest-rate environment, sellers need to price their property fairly to others on the market, or they run the risk of making it harder to sell by limiting the number of buyers for their home.” 

Prices have relaxed as the rate of annual price appreciation cooled and median selling prices fell from their summer peak. 

Month over month, the median sales price of a single-family home fell for the fourth month in a row, down 3.6% from October’s $829,9000. That median selling price is down 12% from July’s record $910,000.

Condo prices fell 2.3% month over month from October’s $695,000 but are down 8.8% from June’s $745,000 peak. 

Socha said relaxed prices and more negotiation room for buyers is good for the long-term health of the market. 

“Once mortgage rates start to slide and listings pick up, sales are likely poised to improve as well,” Socha said.