Greater Boston home sales, prices rebound in October MABA MassachusettsRealEstate FirstTimeHomeBuyers MaBuyerAgent

 Greater Boston home and condo sales and prices rebounded in October as lower mortgage rates and a surge of new listings lured buyers back into the market, the Greater Boston Association of Realtors® (GBAR) reported. According to GBAR, the increase in buyer activity marked the first rise in sales volume in three months and also contributed to the boost in median prices, which had been falling for the past three months.

 October single-family home sales rose twelve percent year over year, with 885 homes sold, compared to 790 homes sold in October 2023. Sales also increased by seventeen point eight percent month-over-month, marking the first improvement in home sales in three months compared to both the previous month and the same month a year ago. GBAR noted that historically, October’s sales volume marked the sixth lowest of any October in the past 20 years. Condo sales also grew, rising three point eight percent, with 718 units sold compared to 692 last October. Condo sales also increased month over month, up twelve percent from September.

 Last month marked the first time since June that condo sales rose on a monthly basis. Similar to home sales, condo sales volume in October marked the sixth lowest for the month in the last twenty years . “Since mid-summer there’s been a growing reluctance on the part of buyers to move forward, with many holding off on a home purchase due to affordability concerns and feelings of uncertainty about the outcome of the presidential election,” said GBAR President Jared Wilk, a broker with Compass in Wellesley. “However, there was a sharp, but short-lived spike in activity after the Labor Day weekend, as mortgage rates fell below six and a half percent to help boost purchasing power and inventory also rose sharply, triggering a much larger than expected number of sales closings in October.”

 Increased demand led to a modest rise in median selling prices both year over year and month over month, reaching new highs for October. October’s median single-family home price rose three percent to $855,000 from October 2023’s $829,950. marking the 16th consecutive month of annual price increases since July 2023. Month over month, home prices grew point six percent from September, marking the first time in four months the single-family home median price increased month over month since June’s all-time high of $960,000. Despite the increases, GBAR noted the median single-family home price is currently the lowest it’s been since February.

 Meanwhile in the condo market, last month’s median selling price rose point seven percent from last year to a new high for the month at $700,000 from $695,000 in 2023. Month over month condo selling prices increased four point twp percent from September, marking the first increase in the median selling price on a monthly basis since June when it reached an all-time high of $750,000. “Buyers have more listings to choose from now than they did this summer and that’s helped to relieve some of the upward pressure on prices, while also creating more opportunity for negotiation,” Wilk said. “In many communities, prices have stabilized with little to no appreciation in selling prices over the past twelve months. In fact, the market has become moderately more affordable as prices for homes and condos are down ten percent and six percent, respectively, since peaking earlier this summer.”
Properties staying on the market longer

 GBAR noted that while inventory levels remain constrained by historic standards, properties are generally staying on the market longer before selling. In October, there were 3,917 single-family homes and condos for sale, a near-three-year high, according to the report. Active single-family home listings increased in October, rising twenty one point three percent year over year, while active condo listings rose twenty one point seven percent. Last months’ inventory did see a modest decline month over month with single-family listings falling five point eight percent percent and condo listings dropping one point eight percent. “With the peak selling season over, it’s not surprising that inventory has started to build,” Wilk said. “Buyers no longer feel the same sense of urgency to pull the trigger on a property, and many seem intent on waiting for mortgage rates or prices to drop before making a move. 

 As a result, we’re seeing fewer multiple offer situations, more price adjustments, and longer listing times before properties go under agreement.” Even though demand softened, last month, the majority of properties sold at or near their full asking price. Single-family homes typically sold for one hundred point six percent of their original list price, while condominiums garnered ninety nine percent of their initial sale price. “Sellers still have an edge in this market, but not to the extent they did previously,” Wilk said. “Mortgage rates are on the rise again and with more properties to choose from, buyers are being more cautious and selective. Sales also tend to slow as the colder weather and holidays approach, so it’s essential that seller pricing reflect current market conditions. Today, we find it’s mostly properties that are priced fairly and in excellent condition that are selling for their full asking price.”

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