Region's housing market finishes year in cooling zone

The steep decline in residential real estate sales continued in December, with single-family homes and condo sales seeing new lows throughout the county, according to the Warren Group report for the month.

The 579 single-family homes sales completed last month marked a 32.3% decline in sales compared with December 2021, when 855 homes were sold.

Despite the significant decline, the median price of $390,000 for a single-family home showed an increase in the county, compared with December 2021, when the median price was 6.6% lower at $366,000.

The same was noted in the county in condo sales, with 163 sales showing a 32.1% decline, compared with the 240 condos sold during December 2021.

Although not by much, the median price for a condo unit of $311,000 was an uptick last month, compared with the median price of $291,703 for a condo during December 2021.

Tim Warren, CEO of The Warren Group, attributed the continued decline in sales to shrinking inventory and mortgage rates. The pattern has been noticeable even on a state level, with only 3,838 single-family home sales recorded in December – a 31.7% decline in sales compared with the 5,622 homes sold during December 2021.

“For the last few years, housing market activity has been so hot that inventory was unable to keep up – and our numbers reflect that,” said Warren. “Add in economic uncertainties and the fact that mortgage rates are nearly double what they were a year ago, and you have the making for a cooling housing market.”

WORCESTER

The 87 single-family sales completed last month was a 33.6% decline in sales compared with the 131 home sales in December 2021.

Despite the decline in sales, the city saw an increase in the median price - with a price tag of $360,000 for last month and $340,000 for December 2021.

Condo sales did not see much interest last month, with 18 unit sales showing a great decline from the 44 sales completed in December 2021.

The sales were completed at a median price of $235,000 – a decrease from $238,500 during December 2021.

FITCHBURG

In December 2021, Fitchburg had 45 single-family home sales recorded at a median price of $310,000. Last month, sales dropped to 32 with a median price of $315,000.

The tight single-home inventory seems to have directed interest toward condos in Fitchburg last month, with eight units sold at $282,500, showing an increase in sales from the four sold during December 2021 at a median price of $292,500.

SHREWSBURY

Although Shrewsbury was not an exception from the pattern, it showed a decline in sales less visibly so last month.

There were 31 sales completed at a median price of $500,000. During December 2021, there were 34 sales completed at a median price of $507,500.

Interest in condos also wavered in Shrewsbury last month, with eight units sold at a median price of $427,500, showing a significant decline in sales from the 13 recorded in December 2021, when the median price was $430,000.

GARDNER

Gardner continued the pattern in the county last month, with 26 single-family home sales completed at a median price of $284,000. This was a change from the 32 sales signed in December 2021, when the sales held a median price of $257,000.

Condo sales did not see much action last month in Gardner, with only three units sold at a median price of $209,000. Worth noting is the increase in price, which shot up by 13% compared with December 2021, when the median price for five units sold was $185,000.

YEARLONG NUMBERS

The pattern of real estate sales decline was a year-long pattern in the county, with 7,791 single-family home sales and 2,070 condo sales completed throughout the year.

These numbers were a decline when compared to 2021, when there were 8,917 single-family home sales and 2,282 condo sales completed.

The median price for a single-family home in the county burdened home buyers throughout the year compared with 2021, with a median of $405,000 for a single-family home representing a $30,000 increase – the year-long median price was $375,000 during 2021.

The same was true for condo sales during 2022, when the median price for a unit was $311,500 -- a 13.3% increase from the median price of $275,000 recorded in 2021.

This article originally appeared on Telegram & Gazette: Massachusetts housing market finishes year in cooling zone