The Massachusetts Association of REALTORS® (MAR) reported a steady rise in closed sales for the month of February. Closed sales on single- family homes rose a total of 8.1% while condominiums also increased 6.0% compared to February of 2020. Inventory is again hitting record lows as single-family homes are down 68.4% over February 2020 and condo inventory is down 33.6%, a remarkable jump from January 2021’s 64.0% and 26.1%, respectively.
Home prices have been on a steady rise in recent months, with February’s data staying on trend. The median price for single-family homes was $462,500, an increase of 17.1% and condominium prices rose by 5.1% to $425,750, when compared to February 2020. Prices are being driven again by high demand, low supply, and interest rates continuing to hit record lows.
“While interest rates did increase in February compared to January, they remain lower than previous years’ and this is contributing to the strong buyer demand. This is not something I believe will majorly impact home sales, though it is important to take this shift into consideration when thinking about buying or selling a home as interest rates contribute to the overall affordability index,” says Steve Medeiors, 2021 President of MAR and REALTOR® at Keller Williams Realty.