New data released Wednesday shows that home prices in the Greater Boston area eased slightly in July, providing some relief to buyers and leading to an increase in home sales.
According to monthly market data from the Greater Boston Association of Realtors, the median sales price for single-family homes fell 3.6% to $925,000 between June and July.
The number of completed sales increased by 0.3% to 1,226 from June to July, an increase of 14.7% over the same period last year.
This represents the largest annual increase in closed sales since June 2021, when sales began to pick up following the pandemic.
“There’s no denying that sales activity continues to lag behind historical norms, but it’s also worth noting that last month was the busiest we’ve had in over a year for processing home and condo sales,” GBAR President Jared Wilk said in a statement. “Buyers have more homes to choose from than they did last summer, and with mortgage rates lower than they were in the spring, the market has become increasingly attractive to prospective buyers.”
Wilk added that the slight price drop indicates that buyers have found more room to negotiate.
In addition to the decline in single-family home prices, the average price of condos fell 1.3% to $740,000.
Buyers shouldn’t take the price drop to heart just yet, however. July was the 13th consecutive month in which the median selling price increased year-on-year.
While median sales prices for single-family homes and condos were 1.6% and 0.3% higher in July than in July 2023, respectively, this represents a smaller annual increase than any other month in the same 13-month period.
The region in Greater Boston with the highest median sales price for single-family homes was in the central Middlesex County area, while the highest median price for condos was in the Metro Boston area at $810,000.
The lowest median sales price in both categories was recorded in southern Norfolk County, where it was $750,000 for single-family homes and $530,000 for condos.
“What we are currently experiencing is not a price correction, but rather a price decline,” Wilk said. “With the peak selling season behind us, there are fewer bidding wars, more offers below asking price and homes taking longer to sell.”
He said sellers should be careful not to price their homes too high, as many potential buyers may wait to buy due to high interest rates.
As prices remained high, unlike single-family homes, condo sales declined slightly last month, falling 2.8% from June and 1.2% from July 2023, to 934.
However, the inventory of homes for sale has increased in both categories since last year: There were 1,528 single-family homes for sale, up 29.7% from July 2023, and 1,951 condominiums for sale, up 19%.
“If there is an influx of new supply as usual around Labor Day and the Fed keeps its promise to cut interest rates, it is almost certain that more buyers will soon return to the market and give us an active fall season,” Wilk said.
