Median Home, Condo Sale Prices Hit All-Time High in June in Greater Boston
The monthly median selling price for detached single-family homes increased for a ninth consecutive month in June, climbing nearly 8 percent on an annual basis to a new all-time monthly high of $541,500. The previous record high median price for any given month occurred during the housing boom of the last decade when the median price rose to $539,000 in August 2005. This marks the first time since March – November 2010 that the single-family median home selling price has risen for nine consecutive months.
The steady increase in median selling price over the past 12 months to a new record high is a measure of the overall health of the local housing market, and reflects today’s strong consumer confidence in the general economy as well as years of pent-up demand which have led to strong buyer activity this spring and a diminished inventory of homes for sale that is putting upward pressure on home prices. Specifically, with fewer homes available for sale the number of multiple offer situations is on the rise and that is helping to drive up home prices. Additionally, a decline in the number of lower-priced distressed properties (i.e. foreclosed homes and short-sales) due to an improving economy means a smaller percentage of homes selling at discounted pricing, and that too has helped to lift the monthly median selling price of late.
On a month-to-month basis the median selling price rose as well, increasing 8.3 percent from $499,900 in May. Historically, the June median selling price reflects a 0.5 percent increase over the previous monthly high median price of $539,000 set in August 2005, and 54.7 percent jump from March 2009, when the median price bottomed out at $350,000 during the recession.
The median selling price for condominiums rose steadily on an annual basis for a fourth consecutive month, increasing 5.5 percent over the past year to a new all-time high monthly median price of $422,000 in June 2013. It’s the third time in the last four months that the median selling price for condos has reached a new high point, with last month’s median price up nearly 3 percent from the previous monthly record price of $410,000 set just one month earlier in May.
With buyer demand steady and inventory extremely limited, sellers are benefitting. This is evident from the ratio of original list price to sales price property owners are receiving for their units, which improved steadily over the past 12 months to a record high 99.7 percent in June. This figure mirrors the 99.4 percent list price-to-selling price ratio earned during May of this year, and surpasses the previous peak return of 98 percent of original list price observed in June 2005 during the housing boom of the previous decade.
Historically, June’s record high median price of $422,000 is up 56.3 percent from the lowest median selling price reported during the last market correction which occurred in January 2009 when the monthly median price bottomed out at $270,000.
To access monthly data by community, check out our Local Market Update reports, and our Monthly Market Indicator Reports for comprehensive regional housing market data for the GBAR/GBREB jurisdiction.