Boston, Ma home values reach new peak as inventory drought intensifies MABA MassachusettsRealEstate FirstTimeHomeBuyers MaBuyerAgent

As more owners continue to hang onto their houses, home values locally and across the nation have reached a new peak, but it comes at a cost. With fewer homeowners putting their houses on the market, the drought in inventory has intensified. “Homebuyers have persisted this spring despite daunting affordability challenges and record-low inventory,” said Jeff Tucker, senior economist at Zillow. “Demand typically begins to ease in the summer, and there are signs that competition is waning, but large price declines are unlikely until more homeowners list their homes for sale.” From May to June, the typical home value in the U.S. rose one point four percent to more than $350,000 for the first time, breaking last July’s record and rising for the fourth month in a row, according to a new Zillow report.

Boston’s home value was $658,657, according to Zillow’s June home value index, a one point eight percent month-over-month change. Listings continue to fall Despite that rise in home values, June saw twenty eight percent fewer listings than a year ago. “June is usually one of the best months for fresh inventory, but this year only three hundred seventy six thousand and five hundred new listings arrived on the market,” the report stated. “That’s closer to levels seen in the slower months of February and October than to average new listings in June (five hundred and five thousand and one hundred), according to Zillow data reaching back to 2018.” Boston saw new inventory fall thirty nine point five percent from June 2022, while total inventory fell thirty six point eight percent.

Rising mortgage rates continue to drive the lack of new listings. The current rate of six point eight percent is the highest since November, up from five point one percent last year and three percent two years ago. That increased cost continues to have homeowners staying put. But Zillow says that’s not the only reason. A steady increase in home values since January indicates some homeowners could be holding out for higher prices. June’s average monthly mortgage payment in the Boston market was $3,387, up eighty four point four percent from 2019. “It could be that some homeowners have been waiting until prices set new highs in their market before opting to cash in their chips,” Tucker said. June’s total number of existing homes for sale is lower than any other June since 2018, down ten percent from last year, but down forty five percent from June 2019.

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