Massachusetts home and condo sales rose steadily in April, marking the second increase in three months and suggesting a resurgence in the Greater Boston housing market, according to the latest report from the Greater Boston Association of REALTORS® (GBAR).
This news comes after nearly two years of declining sales in the Bay State and coincided with the median sale price of single-family homes hitting a new high last month. Despite mortgage rates being near a 22-year peak, GBAR’s report suggests that buyers are gaining confidence and demand remains strong.
April single-family home sales grew 12.3% year over year, with 766 homes sold, compared to 682 homes sold in April 2023, marking the third time in the first four months of the year that home sales showed a year-over-year increase. The report found that month-over-month home sales had the largest percentage growth since June 2021 when sales increased 59.2% year over year. Despite the increases, April’s sales volume is still below historic standards, marking the fifth-lowest April sales total in the past 20 years.
Condominium sales also increased last month, up 7.3% from a year earlier, with 763 units sold, compared to 711, marking the largest annual percentage gain since November 2021. But despite that gain, April’s condo sales pace was the eighth-lowest the month has seen in the past 20 years.
GBAR president Jared Wilk, a broker with Compass in Wellesley, said while it’s been slow going for the last couple of years, they’re starting to see signs of a modest market rebound in the early part of the year.
“The softening in mortgage rates that occurred in the first two months of the year has helped to boost buyer optimism and spur activity, making it feel like a more normal spring market,” Wilk said. “On top of that, listings for single-family homes and condos are at their highest levels in six months, which is providing buyers more choice and room for negotiation when entering the market.”
April’s median single-family home prices set new records for the month. The median price of a single-family home rose 16.2% to $950,000 from April 2023’s $817,250. The median selling price also rose 5.5% month over month from March’s $900,500.
The condo market saw some price moderation in April. Median condo prices dropped 1.4% to $710,000 from last April’s $700,000, while also declining 5.4% from March’s $740,000.
Wilk said even though inventory is at its highest since last October, there still aren’t nearly enough listings needed to meet buyer demand, allowing prices to remain at or near record highs.
“Inventory is especially tight in the single-family home market, where the supply of listings is about 25% less than that for condos, which is why prices for these properties have been appreciating more rapidly over the first four months of the year,” he added.
And with more homebuyers entering the market, homebuying competition is becoming heated once again.
“Homes that are priced right and well-maintained continue to attract multiple offers, bids above asking price and even the waiver of some contingencies, which just adds to our already high housing costs,” Wilk said. “In today’s competitive market, sellers also are being more aggressive on their pricing, which is putting even more upward pressure on home prices.”
Last month, the majority of properties sold at or above their full asking price. Single-family homes typically sold for 103.4% of their original list price, while condominiums garnered 100.6% of their initial sales price.
“Sellers are taking advantage of the imbalance between supply and demand to ask for top dollar, and many are getting it,” Wilk said.
“However, properties that are overpriced are staying on the market longer and often require a price adjustment, as most buyers are unable or unwilling to overextend themselves financially at today’s higher rates and prices,” cautioned Wilk, who noted that many are well-versed on the market, can recognize properties that are overvalued and will balk at making an offer.
Active single-family home listings remained flat in April, rising just 0.6% year over year, while active condo listings grew 11.3%.
“Many homeowners have been resistant to selling in today’s higher interest rate environment, which has not only contributed to slower sales, but significant pent-up demand in the market,” Wilk said. “We appear to be getting closer to a rate cut by the Fed though, and that should lead to more listings, improved purchasing power and additional gains in homebuying activity over the remainder of the spring and summer.”