Craig Douglas
Managing editor/online vertical products and research- Boston Business Journal
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Rising interest rates and a rush among new sellers hoping to capitalize on a warming housing market have combined to boost U.S. housing inventories by 24 percent since February, although listings still remain tight in Greater Boston.
According to Realtor.com, there were 1.98 million homes for sale in August, up 1 percent from July’s total and the sixth-consecutive month in which inventories had increased.
The rise in U.S. housing stock for sale corresponded with signs of a broad-based housing rebound as well as a rise in lending rates spurred by concerns that the Federal Reserve will tighten its monetary policies in the months ahead. In late August, the 30-year fixed mortgage rate popped to 4.58 percent — its highest level in two years. As recently as May, rates were in the 3.35 percent range.
Despite the national rise in inventories, the Boston market continues to be a tough place to find a home. As of Aug. 30, the region had roughly 20,000 homes listed for sale, down 20 percent year-over-year but up 5 percent from July’s total. The area’s inventory had a median age of 70 days last month, which also was down 20 percent on a year-over-year basis but up 12 percent from July. Realtor.com said the median home price in the Boston area was $344,000.
Nationally, the median inventory age was 92 days as of last month, while the median home price was $199,900, Realtor.com reported.