Median Price Of A Condo Rivals Cost Of A Single-Family Home
BOSTON, March 26, 2014 – Bay State single-family home sales dropped 4.1 percent in February, according to a new report from The Warren Group, publisher of Banker & Tradesman. This is the third time in the last four months that home sales have declined.
Single-family home sales decreased for the month to 2,078 from 2,166 in February 2013. Home sales have dropped in February in eight of the last 10 years. For the year, sales were up slightly, increasing almost 1 percent to 4,806 from 4,765 at this time last year.
“This modest drop in sales was caused by the same lack of inventory that has plagued the market for months,” said Timothy M. Warren Jr., CEO of The Warren Group. “These February sales numbers represent closings on homes that went under agreement in December, for the most part. Cold weather and holidays are certainly factors in making February traditionally the slowest month of the year.”
The median price of a single-family home continued to climb upward to $285,500 in February 2014, from $280,000 in February 2013, a 2 percent increase. The median price of a single-family home has increased every month since September 2012. The year-to-date median price of a single-family home was also up, increasing 7.1 percent to $300,000 for the year from $280,000 at this point in 2013.
Condo sales increased for the eighth consecutive month to 947 in February 2014, from 889 in February 2013. This represents a 6.5 percent increase. For the year, condo sales increased 11.8 percent to 2,091 from 1,870.
The median price of a condo jumped 12.4 percent in February to $281,000 from $250,000 for the same month last year, making the cost of a condo just $4,500 less than that of a single-family home. Year-to-date condo prices increased 18.4 percent to $290,000 from $245,000 at this time last year.
“Low supply and high demand continue to create pressure that drives prices up. The 18.4 percent increase in condo median prices so far this year is an indicator that condominiums are increasingly popular and we have a strong mix of luxury condos in the sales totals. Empty-nesters are ready for a change in lifestyle and have the net worth to take the plunge,” Warren said.