MELROSE — The city’s housing market followed a state-wide trend last month as single-family homes sales declined in November on a year-over-year basis as higher interest rates, constricted inventory, and economic uncertainties continued to impact activity, according to a new report from The Warren Group, a leading provider of real estate and transaction data.
In Melrose, 15 single-family homes sold last month for a median price of $850,000, down considerably from November 2021 when 20 single-families were sold. However, the median price of the houses sold in the city in November of last year was much lower — $772,500.
So far in 2022, 220 houses have been sold in the city for a median price of $814,250. The median price of the 243 single-families sold through November 2021 was $770,000.
Last month, there were 3,806 single-family home sales in Massachusetts, a 29.4 percent decrease from November 2021 when there were 5,394 transactions. This marked the fewest single-family home sales in the month of November since 2014. Meanwhile, the median single-family sale price increased 3.9 percent on a year-over-year basis to $530,000, up from $510,000 in November 2021. Despite being a new all-time high for the month of November, this was the smallest percent increase on a year-over-year basis since June 2020.
“The significant drop in single-family home sales came as no surprise in November,” said Tim Warren, CEO of The Warren Group. “A tightening inventory, higher interest rates, and economic uncertainties have had a big impact on consumer confidence, and real estate activity has taken a hit in recent months. The more important development is the slowdown in median price hikes. The 3.9 percent increase we saw in November was the smallest percent increase on a year-over-year basis since June 2020.”
Year-to-date, there have been 48,504 single-family home sales in Massachusetts, a 14.5 percent decrease from the first 11 months of 2021. Meanwhile, the year-to-date median single family home price increased 7.8 percent on the same basis to $550,000.
Condominiums
There were 1,663 condominium sales in November 2022, compared to 2,127 sales in November 2021 – a 21.8 percent decrease on a year-over-year basis. This marked the 15th consecutive month that condo sales have declined on a year-over-year basis. Meanwhile, the median sale price increased 6 percent on a year-over-year basis to $475,000 – a new all-time high for the month of November.
“The condo market followed very similar trends to the single-family market in November – a massive year-over-year decline in sales paired with a more modest increase in price,” Warren added. “It’s clear that neither market is immune from current economic conditions.” Year-to-date, there have been 22,094 condo sales, a 21.8 percent decrease from the first 11 months of 2021 with a median sale price of $490,000, a 7.7 percent increase on the same basis.
In Melrose, 6 condos sold last month for a median price of $485,000. In November 2021, 3 condos sold for a median price of $675,000.
So far in 2022, 81 condos have sold in Melrose, down considerably from the 106 condos sold through the end of November 2021. The median price of the condos sold through November of this year was $500,000, up from the $465,00 median price of those sold through the same period in 2021.