Condo Prices in Massachusetts Have Reached an All-Time High
On average, they're now more expensive than single-family homes.
According to two reports released today, condos in Massachusetts have become extremely expensive. So expensive, in fact, that median prices have reached an all-time high for the month of March.
Reports from the Massachusetts Association of Realtors (MAR) and real estate tracking firm the Warren Group both found median condo prices across the state to be around $389,000. That’s a 20.1 percent spike since last March, according to the Warren Group. It’s also more expensive than the median price of a single-family home in Massachusetts, which has increased to $369,000, per MAR.
“In real estate we know it’s all about location, location, location,” said Rita Coffey, MAR president and general manager of Century 21 Tullish & Clancy in Weymouth, in a statement. “Today we know that land and square footage might not be the biggest predictor of how much your home is worth. This is why we see condos in hot neighborhoods selling for more than single-family homes state-wide.”
Both condos and single-family houses are experiencing record lows in terms of inventory, which is part of the reason why prices are surging in both categories. According to MAR, it’s the fourth month in a row that the number of single-family homes on the market has been below 10,000. This year is proving to have some of the lowest number of homes and condos for sale during the month of March: 9,683 for single-family homes and 2,361 for condos.
“Although year-to-date single-family homes sales have dipped slightly from where they were at this time last year, the median sale price continues to increase at an impressive rate,” said Tim Warren, CEO of the Warren Group, in a statement. “The most recent gain marks 24 straight months of year-over-year median home price gains, and even though we should see an increase in inventory on the market in the coming months, there’s no sign that price gains will slow down.”
The two reports reflect something we’ve been hearing for a while now—low supply is driving prices sky high, making for an ultra-competitive market. Condo buyers, beware.
“Realtors and their buyer clients especially want to see new listings come onto the market at the start of the spring market,” said Coffey. “Unfortunately, new listings are not keeping up with the demand.”