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Real Estate News: Despite Limited Inventory Greater Boston Market Continues to Boom

In July, the Greater Boston housing market was extremely active as buyer confidence continues to soar among a thriving economy, local job market and record-high prices for both the single-family and condominium markets, according to data from the Greater Boston Association of REALTORS (GBAR). Although there was a softening in sales totals from record highs last July, each marketplace finished with above average sales volume for the month.

Desirability to live in Greater Boston remains strong but entry-level buyers in particular are finding their home search to take more time as they struggle to find a home they can afford, said Sarno. At the same time, many home owners continue to take advantage of the equity in their homes and either trade up or downsize, which keeps the market active across the full range of prices.

The single-family detached home sales dropped on an annual basis for the first time in thirteen months as 1,596 units were sold in Greater Boston. This total is a 16.1 percent decrease from the all-time record high sales total of 1,903 homes sold last year and is the fifth highest sales total for July. The single-family median sales price rose a modest 4.5 percent from $550,000 in July 2015 to $575,000 last month. This represented the twenty-second consecutive month that the single-family median sales price has improved as well as an all-time record high median sales price

Greater Boston Single-Family Market Overview

July2015 July2016 +/-
Closed Sales 1,902 1,596 -16.1%
Median Sales Price $550,000 $575,000 +4.5%
Days on Market Until Sale 49 51 +4.1%
New Listings 1,630 1,323 -18.8%

The condo market experienced a 17.4 percent decline in sales from 1,377 in July 2015 to 1,137 last month and marked the seventh highest sales total for the month of July. Meanwhile, median sales prices increased 7.6 percent to $495,000 up from $460,000 in July 2015, setting a new record-high for July.

Greater Boston CondominiumMarket Overview

July 2015 July2016 +/-
Closed Sales 1,377 1,137 -17.4%
Median Sales Price $460,000 $495,000 +7.6%
Days on Market Until Sale 40 40 +0.0%
New Listings 1,117 1,105 -1.1%

Limited inventory and easing of demand from record numbers a year ago has led to this decline, however sales figures remain well above average for the month of July, said GBAR President Andrew Sarno. Last years record-high was slightly inflated by the slow spring market and we are pleased with the continued activity and consumer confidence weve experienced this summer. Frankly, the level of activity weve seen is exceptional given where prices are, however we are beginning to see some buyers get priced out at the entry level.

The inventory shortage continues to plague Greater Boston as again the largest statistical change came with the falling inventory numbers. This has resulted in an intensely competitive market throughout Greater Boston and solidifies that now is a great time to put your home on the market as a boost in supply is needed more than ever.

Source: Greater Boston Association of Realtors. Findmore information here.

About the Greater Boston Association of Realtors:The Greater Boston Association of REALTORS (GBAR) represents over 6,500 real estate professionals throughout the Greater Boston and Eastern Massachusetts area and is one of the local boards of the National Association of REALTORS the largest trade association in America. GBAR provides professional development courses, standard forms, legal reports and updates, brokerage counseling, legislative and regulatory representation, ethics, mediation and arbitration services, as well as recognition awards.

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