July’s Massachusetts housing market experienced a slight increase in closed sales, while median sales prices fell for the first time since early in the year, hinting at a market shift, according to the Massachusetts Association of Realtors (MAR) July market report.  

Single-family home closed sales saw a 1.1% month-over-month increase from June to July, while closed condominium sales fell for the first time since January. 

At the same time, the median sales price of a single-family home fell 3.1%, marking the first decline since February. 

Amy Wallick, 2024 MAR president and sales agent at Lamacchia Realty, said the latest data shows the market is moving in a more positive direction, “but limitations on available homes for prospective buyers remains an ongoing challenge.” 

“We’re hopeful with this dip in median sales prices and the changing seasons more prospective buyers will soon be in a better position to pursue home ownership,” she said. 

Last month, the median sale price for a single-family home in Massachusetts decreased by 3.1% from July 2023 to $678,500, while new, single-family home listings fell 15.1%.

The condo market fared similarly last month. The median sales price of a condominium dipped 1.6% to $575,500, while new condo listings fell 12.5%. 

The drop in July’s median sales prices for both single-family homes and condominiums led to a rise in the housing affordability index for both markets — the first increase since December 2023 for single-family homes and since February for condominiums, according to MAR. 

Closed sales for single-family homes saw a modest 1.1% increase from last year, while condominium sales dropped by 3.4%.

The drop in new listings for the second month in a row indicates that sellers remain cautious, likely due to existing inventory, rising interest rates and the approaching back-to-school season, MAR found.