Sales of Boston metro area detached single-family homes increased 17 percent year-over-year in May, according to new data from the Greater Boston Association of Realtors (GBAR). Last month’s 1,240 home sales marked the 12th consecutive month of year-over-year sales increases, as well as the highest single-family home sales total for May since 2004 when there were 1,269 homes sold.
Condominium sales in the Boston metro area were also on the rise, with a 14.6 percent year-over-year spike from 958 units sold in May 2015 to 1,098 this May. Last month's condo sales total was the highest level of May sales since 2013, when 1,129 condos were sold.
The single-family median sales price increased 1.9 percent from $520,000 in May 2015 to $530,000 last month; this is the 20th consecutive month that the single-family median sales price has recorded gains. The condo market median sales prices increased 2.8 percent to $477,015 up from $463,950 in May 2015.
But there was one aspect of this market that was not increasing: inventory for the single-family home market plummeted 17.4 percent from 3,533 homes for sale in May 2015 to 2,918 last month, while the condo market inventory sank to 1,413 from 1,937 last year, a 27.1 percent drop. Both of these figures represent the largest decrease on an annual basis for the past year.
"With the continued inventory shortage in our region it's no surprise that many homes are being sold at or above their original listing price as buyers are eager to close on a home before any additional price increase," said GBAR President Andrew Sarno, broker associate with RE/MAX Andrew Realty Services in Medford. Mass. "We often see bidding wars drive up costs and price out buyers when inventory is lacking; however with a modest rise in sales cost and an increase in pending sales this month buyer activity remains high despite these challenges."
