Housing Trends: Rising Prices, Falling Sales, Inventory Woes
Sales of both single-family homes and condos in Massachusetts declined in February as housing prices rose even further.
Single-family home sales tumbled 14.7 percent last month as the median home sale price increased 5.4 percent on a year-over-year basis to $470,000, up from $446,000 in February 2021, according to The Warren Group.
Tim Warren, CEO of The Warren Group, said Monday that buyers are chasing after a shrinking stock of available homes, noting the Massachusetts Association of Realtors reported that inventory of single-family homes for sale was down 50 percent in January.
“New listings and pending sales were down as well,” Warren said “February was the eighth month in a row where the number of homes sold declined while the median price continued to rise. It is a familiar trend, one that is likely to continue unless sellers flood the spring market with new homes.”
Condo sales in February were down 17 percent over-the-year, with the median condo sale price rising 5.3 percent to $440,000.
The median sale prices for homes and condos in February both set new record highs.
Gov. Charlie Baker on Tuesday identified the difficult housing market in Massachusetts as the single biggest headwind on the local economy. Public policies have so far failed to lead to a major surge in housing production, and critics of local zoning control say that dynamic often works against the creation of new supply and more options for buyers.