Massachusetts' red-hot housing market is starting to show signs of cooling off.
The median price of a single-family house in Massachusetts fell to $552,000 in the month of August, according to the Massachusetts Association of Realtors. This is down 1.4 percent from July and 4.7 percent from June. June's median price of $578,500 was an all-time high.
Despite this recent decline, the median price for a single-family home is still up 12.2 percent from last August. However, the number of closed sales in 2021 decreased by 9.7 percent compared to August 2020.
Steve Medeiros, the President of the Massachusetts Association of Realtors, said in a press release multiple factors contributed to the decline in buyers in the market.
“We are seeing a steady increase in demand for starter homes, and with challenges such as labor shortages, rising materials costs and supply-chain setbacks, the construction industry is unable to keep up, many are turning to renting as a solution,” Medeiros said.
The market hasn't gotten any better for renters though. The national median rent has increased by 11.4 percent in 2021 while Boston rent went up 2.9 percent last month alone, according to Apartment List. The Massachusetts Association for Realtors attributes this increase to "high sales prices and an inadequate supply of available housing have forced many first-time home buyers to rent for the foreseeable future."
Medeiros said the number of listings in September is positive sign for perspective home buyers though.
“For the first time in about a year, we’ve seen a rise of inventory and are already seeing an uptick in post-Labor Day listings," Medeiros said. "With these indicators, we’re optimistic that the fall market will be a busy one and become slightly more buyer friendly.”