Median Home Sale Price Rises By Double Digits Again

BOSTON, May 29, 2013 – Single-family home sales in Massachusetts dropped slightly in April compared to the same month a year ago. Meanwhile, the median home price statewide increased for the seventh consecutive month, according to The Warren Group, publisher of Banker & Tradesman.

In April, there were 3,504 single-family home sales, down about 1 percent from 3,541 in April 2012.  This marks the third consecutive month that sales volume decreased year-over-year. April sales volume reached the highest level so far this year; surpassing the 2,979 sales recorded in March. Year-to-date sales are also down 2.7 percent – a total of 11,244 homes have sold so far this year, down from 11,558 during the same period last year.

“There is high demand and low inventory this spring, which is causing this pattern of rising prices and dropping sales volume,” said Timothy M. Warren Jr., CEO of The Warren Group. “Despite the news that sales volume is down, low mortgage rates and steady home values are helping buoy consumer confidence.”

The median price for single-family homes sold in April rose almost 14 percent to $313,000 from $275,000 a year ago. This is the seventh consecutive month that the median sale price increased statewide, and the first time since 2008 that the median price surpassed $300,000 in the month of April. The median selling price for the first four months of the year was $294,000, an 11 percent increase from the $264,000 median price recorded during the same period in 2012.

“The housing market continues to improve, but could be hindered if rising prices cause an affordability issue. Three consecutive months of double digit price increases is slightly concerning,” Warren added.

Statewide condominium sales increased – rising more than 8 percent to 1,493 from 1,382 in April 2012. A total of 4,546 condo sale transactions were recorded in the first four months of the year, a 2.4 percent jump from 4,439 the prior year.

The median condo sale price rose again in April. Prices climbed almost 1 percent to $280,000 in April from $277,750 during the same month in 2012. The year-to-date median condo price crept up 1.6 percent to $260,000 from $256,000.