Jon Gorey-Globe Correspondent
May 17, 2022 15:56
Home prices and mortgage rates continue to rise — it’s like a race to see who can make homeownership dreams more out of reach.
Median selling prices for Massachusetts single-family homes reached a record $ 560,000 in April, according to a real estate analyst. Warren Group.. This shows an increase of 9.8 compared to the early April 2021 of the pandemic, an increase of 30.2 percent from two years ago.
Home sales of 3,862 units across the state in April were down 14.8% year-on-year. Tim Warren, CEO of the Warren Group, said this was the biggest decline to date this year. “To find such a sharp drop in sales, we need to go back to October.”
Both low sales volumes and record prices can lead to a shortage of homes for sale. According to the company, the inventory of single-family homes on the market in April was less than a month. Massachusetts Real Estate Agents Association.. “The number of new listings declined in April as well, which may have provided relief,” Warren added.
Buyers hoping to secure a summer home in Cape Cod faced difficult possibilities. The median home in Barnstable County was $ 681,500 in April, up 22.8% from a year ago and surprisingly up 59%. April 2020, When a typical Cape house gets $ 429,000. “There isn’t much to sell in the cape, so supply is very limited, which is probably pushing up prices,” Warren said. Sales have fallen by more than 21% year-to-date as few properties are available. ((((See the county-specific data here.).
For buyers who cannot compete in the single-family market, condominiums did not necessarily offer an affordable alternative in April. The median Baystate condos surpassed $ 500,000 for the first time last month, rising 11.6% from a year ago to a record $ 530,000. Sales were slower than last year, with sales of 2,149 condominiums recorded across the state. This is a 15.2% decrease from April 2021.
The price of a typical condo sold in Cambridge in April increased by 20.4% year-on-year from $ 810,000 to $ 975,000. The median value of Haver Hill Condos rose 12.3% to $ 335,000. ((((See data by town here.. )
Meanwhile, the average interest rate on 30-year mortgages reached 5.3% last week, According to Freddie Mac, About 1.5 percentage points higher than in early March. High interest rates on mortgages cost buyers to lend to homes of the same price (for example). Hundreds of dollars a month).
Many sales that ended in April may have been agreed at low interest rates in March, Warren said. He expects rising mortgage rates to begin to impact demand, slowing price growth in the second half of this year, or perhaps next month. “I think the number of people who had rate locks in May, or who still have rate locks, must be pretty low,” he said.
“Especially inflation and recession concerns have shaken consumer confidence a bit,” he added. Jump into something. “