Boston’s housing market shows signs it’s improving MABA MassachusettsRealEstate FirstTimeHomeBuyers MaBuyerAgent

The Greater Boston housing market showed signs of improvement last month as listings saw more modest gains and mortgage rates continued to drop from their fall peak. Both factors are meaning more homebuyer demand as the spring market officially arrives. March not only saw increased buyer activity for single-family and condominium sales, both of which had the highest level of activity in three months, but also ended a three-month decline in the single-family home median selling price, according to the latest Greater Boston Association of REALTORS® March market report.

In March, single-family home sales fell seventeen point seven percent year over year, with seven hundred and fifty five homes sold, compared to four hundred and ninety nine homes sold in March 2022. Last month was the tenth month in a row of year-over-year sales declines, marking the slowest March for single-family home sales since 2009. Condominium sales followed a similar path last month, falling for the sixteenth straight month with a twenty one point eight percent decline from a year earlier and marking the month’s lowest sales since 2015. Month over month, however, March’s sales volume grew, up forty eight point six percent, with six hundred and twenty one single-family homes sold, compared to four hundred and eighteen sold in February. Condominium sales also rose last month, up fifty six point three percent with six hundred and ninety four condos sold, compared to four hundred and forty four in February.

GBAR president Alison Socha says the spring homebuying season has had a slower start than we’re accustomed to, but buyer traffic and overall market activity have improved steadily since January. “Increasingly, buyers are coming to terms with the fact that the current interest rate environment is here to stay, and this reality, along with a general easing of mortgage rates from their fall peak, has helped to kick start the market. Unfortunately, housing supply still lags behind demand, and that, more than anything, is hindering sales,” she said. With more buyers entering the market and inventory still being constrained, selling prices in March rose both year over year and month over month.

The median selling price of a single-family home rose five point three percent from a year earlier, climbing to $830,000 from $788,000. It also rose eighteen point seven percent from a month earlier, when the median home sale price was $699,500, but was still down from its June 2022 peak of $899,950. March’s increase marks the first time the median sale price of a single-family home rose year over year or monthly since November. The median selling price for condominiums also rose last month, climbing one point nine percent from $675,000 a year earlier and seven point four percent from $639,000 in February to $687,500 and up marking the third time in the past five months condo prices appreciated on both a yearly and monthly basis. Despite the increase, March’s median sales price is still three point eight percent below April 2002’s record high of $717,000.

“Even though we’re not experiencing anywhere near the level of buying frenzy we saw over the past couple of springs, it’s still a highly competitive market,” Socha said. “With listings at a premium in many communities, we’re seeing large numbers of buyers at open houses, a return to multiple offer situations on many properties, and homes that are priced right are once again selling quickly, in days rather than weeks.” The report also found that since the end of last year, time on market has steadily decreased with single-family homes listed for a median of fifteen days in March, compared to thirty four in December and condominiums staying on a little longer for nine teen days compared to forty one days in December.

The sold-to-list price ratio also improved in March, according to the report, which found the typical single-family home sold for one hundred point three percent of its asking price, up ninety six point eight percent from February. Condominiums fared similarly, selling for ninety eight point nine percent of the original asking price last month, compared to ninety seven point seven percnt in February.  Socha says for those in a position to sell, the conditions are favorable. “Many buyers are anxious to take advantage of the recent drop in mortgage rates, and with listings lighter than a typical spring and equity values still not far from their record level of last spring, it’s an opportune time to be listing a home for sale,” she said.

Housing Inventory Is Up, But Still Not Enough

At the end of March, the market had a two- to three-month supply of inventory. But while that’s in line with last year, it’s not enough to meet current demand. Taking a page from last month’s increase in listings, Socha says they should continue to improve. “Buyers can expect even more housing choices the further we get into the spring, but any inventory gains are likely to be modest,” Socha said. “ That should enable home values to remain firm and ensure that any future price changes are minimal.” In March, active single-family home listings rose month over month to forty two point nine percent to 1,206 from February’s eight hundred and forty our844. They were also up seventeen point eight percent from last March’s 1,024. Condominium listings also increased last month, up twenty three point nine percent to 1,763 listings from 1,349 in February, yet remaining flat from March 2022.

The post  Boston’s housing market shows signs it’s improving  on Boston Agent Magazine.

FIRST TIME HOMEBUYERS