The lack of listings across the Greater Boston housing market had home and condo sales sliding and prices climbing last month. 

Sales dropped to their lowest level for the month in 12 years, according to the Greater Boston Association of Realtors (GBAR) October housing report.

In October, single-family home sales fell 12.6% year over year, with 782 homes sold, compared to 895 homes sold in October 2022, marking the slowest October for single-family home sales since 2011. Month over month, however, home sales rose 3.7% from September. October also marked the 17th month in a row that single-family home sales fell on an annual basis.

Condominium sales also declined, falling 10.8% from a year earlier, with 680 units sold, compared to 762 in October 2022, also the slowest October for condo sales since 2011. Month-over-month condo sales fell 2.9%. October was also the 23rd month in a row condo sales declined on an annual basis.

GBAR President Alison Socha, an agent with Leading Edge Real Estate in Melrose, said the prospect of facing higher mortgage rates, appreciating home prices and more intense competition in this tight inventory market has not only diminished purchasing power, but overall housing demand, and the rainy weather this summer did little to help entice buyers into the market

“We’ve seen renewed interest this fall, however, after the market absorbed an influx of new listings following the Labor Day holiday,” Socha said. “That’s led to a modest pick-up in activity over the past month, especially at the middle and upper ends of the market where interest rates tend to be less of a factor in buying decisions.”

The report noted that even with economic concerns, buyer demand continues to outpace supply, keeping home values strong. In October, the median sales price of both single-family homes and condos hit new records.

The median sales price of a single-family home in October rose to $829,950, up 10.8% from October 2022’s $749,000. Condominium sale prices also rose, climbing to $694,812, up 13.7% from last October’s $611,250.

Socha says the steady price gains over the past year are due to today’s low inventory. 

“While there are fewer buyers in the market today than two years ago, or even this past spring, we don’t have nearly enough listings to meet the demand, and that imbalance continues to put upward pressure on home prices,” Socha said. 

Those limited listings give sellers the upper hand, allowing them to get their asking price or above for their homes. 

A typical single-family home sold for 101% of its original asking price in October, while a typical condo sold for 100.4% above list price, marking the seventh month in a row the sold-to-list-price ratio reached or exceeded 100%.

That may soon come to an end for those looking to sell, however. Socha said the past few months have seen an increase in price adjustments due to homeowners becoming too aggressive on their pricing. 

“Especially in today’s high-interest rate environment, we find that sellers who overprice their property run the risk of making it harder to sell by reducing the pool of available buyers for their home,” she said. 

The report found evidence that price softening is coming as median prices show modest dops from their summer peaks. The median selling price has fallen for three months in a row and in October fell 2.4%. The report also noted that the single-family median sale price was down 8.8% from its July record high. 

The median selling price of condos, on the other hand, remained mostly flat, with a 0.8% increase from September, but down 6.7% from its June peak. Active listings of single-family homes in October declined 20% from 1,733 last year to 1,395. And new listings fell 11% during the same period. Condo listings also declined, falling 10% from 2,091 last October to 1,871 last month, while news listings didn’t show much change, down 0.9% during the same period.  

“As we approach the holiday season, we expect sales to naturally slow, and that will allow buyers a little more opportunity to negotiate, but with listings at a premium, it will still feel quite competitive to those in the market,” Socha said.