Pending home sales drop as expected
Homebuying activity continued to fall throughout Greater Boston last month, as rising mortgage rates, increased consumer anxiety and buyer fatigue continue to weaken demand, according to the Greater Boston Association of Realtors (GBAR) September housing report.
In September, single-family home sales fell 32.3% year over year, with 752 homes sold, compared to 1,110 homes sold in September 2022. Sales fell 31.6% month over month, marking the slowest September for single-family home sales since 1995. September also marked the 16th month in a row single-family home sales fell on an annual basis.
Condominium sales saw an 8.4% decline from a year earlier, with 686 units sold, compared to 749 in September 2022. Month-over-month sales fell 14.1%, marking the weakest September for condo sales since 2002. September was also the 22nd month in a row condo sales declined on an annual basis.
Alison Socha, GBAR president and an agent with Leading Edge Real Estate in Melrose, attributes the declines to economic concerns.
“Economic forces have been weighing down the market for much of the summer which has caused an increasing number of buyers to stop looking, or at least pause their home search,” Socha said. “With interest rates climbing, selling prices still close to record high and inventory levels at their lowest point in over two decades, few are in a rush to buy. Instead, many are choosing to sit tight until more homes come on the market that meet their budget or mortgage rates and prices come down, and that’s led to slower sales.”
Despite the decline in activity, home values continued to rise from last year, although they declined month over month after receiving a boost in listings.
Median sale prices of both single-family homes and condominiums hit record highs last month.
The median sales price of a single-family home in September rose to $849,950, up 11.7% from September 2022’s $761,000. Condominium sale…