Even as the real estate market is showing signs of cooling and more sellers are dropping asking prices, median home prices increased by double digits from last year.

Real estate inventory in the Bay State continues to be a challenge for buyers looking for single-family homes as well as condominiums. 

Also during the month, the median sales price rose to $390,500 from $370,200 in June, according to the U.S. Census Bureau and the Department of Housing and Urban Development.

“Much of the home-sales growth is still occurring in the upper-end markets, while the mid- to lower-tier areas aren’t seeing as much growth because there are still too few starter-homes available.” — NAR chief economist Lawrence Yun

In what’s been a historic, frantic market, homes selling for large sums over list prices have risen sharply since January.

Sales activity in Massachusetts’ single-family housing market fell in July, even as the median sales price remained over $500,000.

You might be surprised by the results of this survey.

“The bright spot in an otherwise underwhelming report comes from the increase in the overall number of permits issued, which can signal how much home construction is in the pipeline.” — First American deputy chief economist Odeta Kushi

Single-family and condo sales both grew month over month, but also saw decreases in volume as the market shows signs of relaxing.

Following months of sky-high prices paired with manic competition — driven by limited supply — the frenetic housing market is starting to cool down. Somewhat.

Smaller, more affordable homes are hitting the market, helping moderate median list prices, according to Realtor.com.

For the first time since early March, no new records were set for median-home-sale prices last month, ending the five-month streak of record-breaking home prices.

Just 56.6% of homes sold during the quarter were affordable to families earning the U.S. median income of $79,900, according to the National Association of Homebuilders/Wells Fargo Housing Opportunity Index.

Meanwhile, pending home sales and housing starts dropped from a year ago, according to Boston Agent’s July Housing Scorecard.

The boost in market activity and prices continues to be driven by millennial buyer demand, the search for more living space, a healthier job market and lower mortgage rates.

Affordability declined in 49 of the 50 major markets according to the May 2021 First American Real House Price Index.