The larger-than-expected increase comes as homebuilder sentiment rose for the sixth month in a row. 

There are nearly 40% fewer homes for sale now than before the pandemic began

Homebuyer competition is driving up prices, as inventory constraints continue to plague the real estate market.

Homes affordable to middle-income buyers — defined as households earning up to $75,000 — fall in the $256,000-to-$320,000 range. But of the over one million U.S. homes on the market at the end of April, less than a quarter of all listings were within that price range.

While the U.S. housing market has seen home prices rise an average of 38.69% over the past five years, Massachusetts homes had the smallest increase since 2021.

Boston listings were down 26.2% from last year.

A second consecutive month of increases in the S&P CoreLogic Case-Shiller U.S. National Home Price Index could indicate a reversal of the negative trend that began last year. 

The number of Massachusetts sellers making concessions to buyers is up from last year.

Despite solid demand, a dearth of homes for sale kept transaction numbers muted in the association’s most recent report on pending sales. 

Ryan Castle, CEO of CCIAOR, said the continued decline in activity was expected due to fewer sales and more affordability concerns. 

A shortage of existing inventory continues to drive buyers to new construction. 

Home prices eased across Greater Boston last month as the spring market got off to a cooler start than usual, according to the Greater Boston Association of REALTORS® April housing market report. 

Multiple-offer situations have returned with the spring buying season while distressed and forced sales are “virtually nonexistent,” the National Association of REALTORS® said.

Massachusetts single-family home and condo prices fell for the first time since 2018, according to a new Warren Group report.

Single-family permits also posted a gain, indicating even more new homes are headed to today’s supply-constrained housing market. 

Despite a dip in median sale prices, housing inventory continues to be an issue across Massachusetts, and there are no signs of the market softening anytime soon.