The housing market in Greater Boston is rapidly slowing down.
In the Boston area it continued to cool last month. Mostly as a result of rising mortgage financing prices. But also due to rising consumer fear about inflation, the prospect of a recession, and decreases in savings and household wealth over the previous year.
The Boston real estate market is still experiencing some growth. Especially for single-family houses in areas with limited supply. But for the most part, home values have stagnated or reached their peak in recent months.
There is currently little upward pressure on prices. Because there are fewer buyers on the market, higher interest rates, and fewer competitive offers.
In October, single-family home and condo sales both fell on an annual and monthly basis.
According to a recent study from the Greater Boston Association of REALTORS®.
While median selling prices fell for the fourth consecutive month, sales of single-family homes decreased for a fifth month in a row on an annual basis.
Falling by 16.3% from 1,058 homes sold in October of last year to 886 homes in October of 2022.
Condominium sales decreased 22.9 percent year over year. From a nearly record high of 963 condos sold in October 2021 to 742 this October.
A further indication of a slowdown in the market.
This is the eleventh month in a row that condo sales have fallen off a yearly basis.
Even yet, during October, the monthly median selling prices for both single-family homes and condominiums surpassed previous records.
A single-family home’s median selling price increased by 6.7 percent in the previous 12 months.
Going from $700,000 in October 2021 to a new monthly high of $747,000 this October.
While this was happening, the median price of a condo rose from $609,900 in October to a new monthly high of $615,000 in October 2022. An increase of 0.8 percent.
The median selling price of a single-family home has dropped 17% since June. When it reached a monthly record high of $899,950. According to the Greater Boston Association of REALTORS®.
While the median selling price of a condominium has dropped 14% from an all-time high of $715,000 in April 2022.
Since the market has begun to normalize, buyers may now bargain and are acting much more cautiously.