Home News Greater Boston’s median home price hits $900,000, but signs of a slowdown emerge

Greater Boston’s median home price hits $900,000, but signs of a slowdown emerge

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$ 900,000, up 2.9 percent From the median of May According to the report, it is 11% higher than in June 2021. Greater Boston Real Estate Agents Association..

$ 900,000. When you spell it, it seems more ridiculous, doesn’t it? Meanwhile, the median condo has reached $ 700,000. Wow.

But even if the price goes up to a new one record, Other data released by a group of realtors on Tuesday suggested that the market could be flat. That’s not a mistake.When Steeper mortgage rates Market fundamentals are beginning to weaken, pricing so many future buyers.

Consider: Number of single-family homes sold June (usually the busiest month around here) was down 9.1% year-on-year, despite a surge of more than 30% in the active list.Think about it: the premium paid for the asking price dropped to 7.6% From 9 percent. please think about it. Pending sales were down 10%.

Equivalent metropolitan areas such as Austin, Denver, Portland, Similar trends can be seen.. Agents and analysts hope that inventories of homes for sale will continue to grow as buyers leave, removing some of the price pressures here and in many other markets that surged during the pandemic.

“We may see significant changes in inventories and new listings,” said Bill McBride, a real estate blogger who oversees 35 markets across the country. I wrote earlier this week.. “So far, most of the inventory growth has been due to softening demand, probably due to high mortgage rates, but we also need to pay attention to new listings.”

The increase in new listings indicates that more homeowners want to sell before things get worse.

The Massachusetts market is still not enough due to the lack of new construction and too many zoning restrictions. After an increase in May, the list of new single-family homes across the state fell 3.6% last month. according to Massachusetts Real Estate Agents Association.. The median selling price of the state rose 9.4% to a record high of $ 629,000. Active and new lists have been rejected.

Of course, the Boston University Market, which consists of 64 communities within the I-495 belt, is not a monolith.

  • In Central Middlesex County, which includes Acton, Concord, Lexington, Wayland and Weston, the average price of single-family homes surged 19% to $ 1.2 million.
  • In Metro Boston, which includes Brookline, Cambridge, Everett, Newton and Libya, the median was $ 975,000, a more modest increase of 5.3%.
  • Also, in towns west and south of Boston (Avon, Canton, Foxborough, Norwood, Sharon, Westwood, etc.), the median rose 6.9% to $ 680,000.

However, mortgage rates are skyrocketing across the state.The average 30-year fixed mortgage rate is about 5.6 percent, according to data from Bankrate.com..

Using a standard 20% down payment with a median price of $ 900,000 in Greater Boston, your monthly mortgage payment will be $ 4,130, excluding property taxes and homeowners insurance. That’s a 50% increase from a year ago, when the median was $ 811,500, interest rates were 3%, and the monthly tab was about $ 2,740.

With the plunge in affordability, house hunters are rethinking their search criteria.

“The whole buyer’s mindset is changing,” Melvin Vieira Jr., chairman of the Greater Boston Real Estate Association, said in an interview. “I see changes in the type and location of the properties they are looking at. Some people are postponing their purchase decisions.”

In conclusion, Vieira said:

Rally Edelman can be reached at [email protected].. Follow him on Twitter @GlobeNewsEd..

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