Greater Boston home sales stall as declining listings continue to impact market MABA MassachusettsRealEstate FirstTimeHomeBuyers MaBuyerAgent

As home sales across Greater Boston stalled in August due to declining inventory continuing to plague the market, median sale prices for both homes and condos remained strong, according to the Greater Boston Association of Realtors (GBAR) August housing report.
GBAR found the housing market continues to be plagued by declining inventory as high mortgage rates and increased economic and job market concerns are softening demand. Despite those setbacks, the median sale price of both single-family homes and condominiums remained strong, rising five to six percent from last year, according to the report.

The median sales price of a single-family home in August rose to $881,000, up six point eight percent from August 2022’s $825,000 and topping June’s previous all-time monthly high of $745.000. Sales prices did decline month over month, down two point three percent from July’s all-time high of $910,000. The condominium median sale prices also rose last month to $685,000, up five point four percent from last year’s $650,000. Similar to single-family homes, prices were down six point eight percent from $735,000 in July and below June’s record high of $745,000.“Despite rising mortgage rates and diminished purchasing power, we’ve seen steady price appreciation over the past year as many buyers have found themselves having to outbid one another for a shrinking number of properties for sale,” said Alison Socha, GBAR president and agent with Leading Edge Real Estate in Melrose. “Even though buyer demand is not as strong as it’s been in recent years, listings have become so scarce over the past couple of months there’s been more than enough competition to keep prices from dropping significantly.”

The latest report indicates the housing market is in a bit of a holding pattern as we head into the fall. Socha says new listings were slow to come online this summer, causing inventory to become somewhat stale, along with economic uncertainties creating buyer hesitancy. “We are not only seeing fewer sales, but the number of offers is also down as many buyers play the waiting game,” Socha said. “Some are holding out for more homes to be listed within their budget, while others are waiting for mortgage rates or prices to come down.” In August, single-family home sales fell twenty five point nine percent year over year, with one thousand and ninety homes sold, compared to one thousand four hundred and seventy one homes sold in August 2022. Sales rose month-over-month, however, jumping one point nine percent from July, making it the slowest August for single-family home sales since 2010.

August also marked the fifteenth month in a row single-family home sales fell on an annual basis. Condominium sales saw a twenty three point seven percent decline from a year earlier, with seven hundred and eight seven units sold, compared to one thousand and thirty one in August 2022. Month-over-month sales fell fifteen point eight percent, marking the slowest August for condo sales since 2000. August was also the twenty first month in a row condo sales declined on an annual basis.  “With fewer homes on the market sellers are seizing the opportunity to ask for top dollar, and they’re frequently getting their price if the property is in excellent condition and a desirable location,” Socha said. “For those looking to move up or trade down, the current period of low inventory and high prices is an opportunity to capitalize on the market’s strength.” Inventory is expected to continue to be an issue through the fall.

At the end of  august, there was only a one- to two-month supply of properties for sale, which the report noted was well below the five to six months of inventory we’d see in a “normal, balanced market.”  Active listings of single-family homes in August declined twenty four percent from one thousand four hundred and forty five last year to one thousand and ninety seven. Condo listings also declined, falling eleven point five percent from one thousand six hundred and ninety seven last August to one thousand five hundred and one last month. Month over month, new listings also declined as single-family home listings fell nine percent from July and condo listings fell fifteen percent. “The lack of inventory along with today’s higher mortgage rates has not only handcuffed home buyers, it’s created indecision on the part of prospective sellers too,” Socha said. “Many owners are opting to stay put rather than sell over concerns they’ll be unable to find a new place to live or have to pay a higher-rate loan, and that’s keeping properties off the market.”

The post Greater Boston home sales stall as declining listings continue to impact market appeared first on Boston Agent Magazine.

FIRST TIME HOMEBUYERS

Buyer’s Agents Explained

Who Pays the Home Buyer's Agent?

Both seller's agent fees and buyer agent's fees are part of a typical real estate transaction and are included in the final negotiated purchase price of the property. There should be no additional fees to the buyer for a buyer's agent above and beyond the negotiated purchase price of a home unless specifically agreed in writing between the buyer and agent before an offer is made.

In most cases, the seller's agent pays the buyer's agent for bringing the buyer, negotiating the purchase price and terms, writing a legally correct offer, coordinating inspections, responses, and financing plus handling numerous additional details on the buyer's side of the transaction.

Buyers should avoid contacting seller's agents and sellers directly unless they are comfortable negotiating and representing themselves. That is why it is important for buyers to choose their agents BEFORE they begin looking at homes or as soon as possible if they have begun looking.

Did you know that fewer than one percent of the agents and brokers in Massachusetts have committed to being 100% loyal to their buyers 100% of the time?

To learn more about the pros and cons of various types of buyer agents, or to get a list of experienced local 100% loyal buyer's agents to interview without obligation, click the button below.

 Find a Great Buyer Agent!