Median condo price experiences a double-digit increase on a year-over-year basis.
PEABODY, August 26, 2020 – Massachusetts single-family home sales rebounded in July on a year-over-year basis following three consecutive months of double-digit declines. Meanwhile, the median sales price for both single-family homes and condominiums continued to set new records, according to a new report from The Warren Group, a leading provider of real estate and transaction data.
Last month, there were 6,765 single-family home sales in Massachusetts, a 5.3 percent increase from July 2019 when there were 6,425 transactions. This increase occurred after three consecutive months of double-digit declines caused by COVID-19, the subsequent lockdown and its disruption of the local marketplace. The median single-family sale price increased 8.2 percent on a year-over-year basis to $460,000, up from $425,000 in July 2019 – an all-time high for the month of July.
“At the start of quarantine, many analysts and local real estate professionals anticipated activity in the second quarter to be awful and the third quarter would be gangbusters,” said Tim Warren, CEO of The Warren Group. “During the lockdown, many people were preoccupied with adjustments to their personal lives. Many were also uncertain about their jobs, as well as the economy, and weren’t actively looking for homes. It appears that shopping resumed in May, and the first wave of deals closed in July. Many buyers may have also gained optimism by not seeing wave after wave of layoffs and perhaps encouraged by a booming stock market.”
Year-to-date, there have been 29,439 single-family home sales – a 9.9 percent decrease from the first seven months of 2019 – with a median sale price of $425,000, representing a 6.3 percent increase on the same basis.
“Buyers’ objectives and priorities for the location of their next home may have adjusted as well,” Warren added. “Confidence in the effectiveness of remote work may have enabled consideration of new locations. Our data shows significant spikes in sales in western Massachusetts as well as on the Cape.”
There were 2,462 condo sales in July which was relatively unchanged from July 2019 when there were 2,463 transactions, marking a 0.04 percent decrease. Meanwhile, the median sale price spiked 10.3 percent on a year-over-year basis to $430,000, up from $390,000 in July 2019. Year-to-date, there have been 11,933 condo sales – a 13.7 percent decrease from the first seven months of 2019 – with a median sale price of $415,000, a 9.2 percent increase on the same basis.
“The condo market also started to heat back up in July, and it was heavily driven by activity in Suffolk and Middlesex counties,” Warren continued. “However, I’m curious to see if future demand for condominiums is affected by concern for living in more densely populated buildings and neighborhoods.”
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