Sales of single-family homes and condos across Greater Boston rose for the second straight month in November as lower mortgage rates and an increase in new listings brought more buyers to the market, the Greater Boston Association of Realtors® (GBAR) reported.
Increased sales volume along with improved purchasing power also helped drive up sale prices, which had softened after peaking at the start of summer.
While sales of both single-family homes and condos grew annually, month-over-month sales fell in both markets, which GBAR noted is typical for this time of year, as buyer interest eases with cooler weather and the holiday season.
November single-family home sales rose 4.9% year over year, with 835 homes sold, compared to 796 homes sold in November 2023. Meanwhile, sales decreased 6.3% month-over-month.
Condo sales also grew, rising 0.3%, with 653 units sold compared to 651 last November. Condo sales decreased month over month, falling 6.3% from October.
GBAR noted that November’s sales volume for both homes and condos marked the sixth lowest for the month of November in 20 years.
“There was a lot of hesitancy among buyers to make an offer over the summer, but once mortgage rates dipped below 6.5% many got off the fence and jumped into the market. We also saw a significant bump in new listings after the Labor Day weekend, which helped to re-ignite buyer interest and trigger a busy few weeks of activity early this fall,” said Jared Wilk, GBAR president and a broker with the Shulkin Wilk Group at Compass in Wellesley.
“Buyer demand slowed over the past two months, however, as the impending presidential election, approaching holiday season and modest rise in mortgage rates since October caused many to become more cautious and put off their homebuying decision until next year.”
Despite softening demand, median selling prices increased year over year, reaching new record highs for November.
November’s median single-family home sales price rose 9% to $865,000 from November 2023’s $793,500, marking the 17th consecutive month of annual price increases since July 2023.
Month over month, home prices grew 1.2% from October, marking the second month in a row single-family home median sales prices rose, even though the median sales price was still 9.9% below the all-time high of $960,000 set in June.
Meanwhile in the condo market, last month’s median selling price of $700,000 represented a 3.1% gain from the year ago level and a new high for the month. It was unchanged from October’s level. Month over month, condo selling prices were down 6.6%.
“Inventory levels are healthier this fall than they were this time a year ago, offering buyers a larger selection of homes to choose from, but demand still exceeds supply at most price points, and that’s helped to keep upward pressure on prices,” said Wilk. “Buyers also were able to take advantage of improved purchasing power during the early fall as mortgage rates and prices were lower than they were this summer, and this allowed them to bid more aggressively on properties, which also accounts for some of the appreciation in selling prices we saw in November.”
GBAR’s report found the majority of properties sold last month went for at or near their full asking price, driven by the ongoing imbalance between supply and demand. Single-family homes typically sold for 100% of their original list price, while condominiums garnered 98.3% of their initial list price.
“Sellers still have an edge in this market, but not to the extent they did previously,” Wilk said. “As we’ve gotten deeper into the fall, we’ve seen fewer offers, more price adjustments and longer listing times before properties go under agreement. Buyers also tend to become more selective and act with less urgency at this time of year, since there are not as many people to compete against, so most properties need to be priced fairly and in excellent condition to sell at full asking price.”
Active single-family home listings increased in November, rising 5.7% year over year, while active condo listings rose 7.7%.
Last months’ inventory did see a decline month over month, with single-family listings falling 27% and condo listings dropping 24%, which Wilk attributed to the end of the peak selling season and not a lot of inventory being listed.
“For those who are thinking about putting their property on the market, this may be an opportune time to do so, since there are fewer properties to compete against during the winter months,” Wilk said. “However, sellers should always be mindful that pricing needs to reflect current market conditions, meaning properties can take longer to sell, and they may need to be flexible on price given there are fewer buyers in the market at this time of year.”