The perfect equation of great demand, low mortgage rates and limited supply of homes has elevated home prices in the Greater Boston area and across Massachusetts as a whole. According to the Greater Boston Association of Realtors records were set for the median prices for both condos and single family homes in the month of June. In the metro region, the median price for a single family home was $585,000 and condominiums came in shortly behind at $505,000.
Prices set new levels beyond the metro area. Statewide, single family homes reached $372,000 for a median which was higher than the most recent boom in August of 2005 according to the Warren Group’s data. Condos reached a median price of $345,000 which was also a new record.
The rate at which homes are increasing in price in the Greater Boston area has been somewhat steep. Single family home median sale prices in the metro area were 4.5% higher this June compared to June of 2015. Condos also saw a dramatic increase being up nearly 10% over last year.
Despite the increase in prices, Warren Group’s chief executive, Timothy M. Warren Jr. states that these prices are reflecting a strong demand and limited supply rather than a housing market bubble.
“Median prices are rising slowly. We’re not in a situation where prices are skyrocketing — at least not statewide,” he said.
Interestingly, these increases were not the biggest seen across the United States. According to the S&P Case-Shiller Index home prices increased year over year by 12.5% in Portland Oregon, 10.7% in Seattle and 9.5% in Denver.
The number of sales still remains healthy with 7,387 single family homes sold statewide which marked the 3rd highest number in a month since 1987, when the Warren Group began tracking data. Comparative to last year, there were 6,430 single families sold in the state.
“There’s talk of rising interest rates,” Warren noted. “Just the talk of it makes people anxious and eager to get into the market and take advantage of those lower rates.”
The month of June was the 13th consecutive month where condo sales increased statewide with 2,828 sold. Within the first 6 months of the year we had seen 10,673 condos sold in the state compared to 9,337 sold in the first 6 months of 2015.