A persistently low supply of detached single-family homes on the market in Greater Boston caused sales to dip 5.2 percent in June, marking the sixth consecutive month that sales have declined on an annual basis, according to the Greater Boston Association of Realtors.
Although statewide, single-family home sales rose 3.7 percent in June, marking the first time sales have posted a year-over-year increase since January, in Greater Boston, low inventory has become a self-perpetuating trend, holding back prospective sellers from listing their homes out of fear that they won’t be able to find one to buy.
“It’s a challenging circle,” said association President Michael DiMella of Charlesgate Realty Group in Boston. “The demand is there. There’s just not enough homes for sale.”
The limited supply also has raised the median selling price for the 21st consecutive month, pushing prices up 5.8 percent on an annual basis to a new all-time monthly high of $576,500, according to the association.
“If you’re inside the Route 128 corridor, bidding wars are still occurring,” said Paul Yorkis of Patriot Real Estate in Medway. “Outside Route 128, they’re not as frequent.”
Although interest rates remain low, higher prices have pushed homes in the Boston area out of the reach of many prospective buyers, Yorkis said.
Tight credit requirements and substantial student debt also are hindering first-time buyers, he said.
“If people have large student debt, it makes it a lot more difficult for them to purchase a new home,” Yorkis said. “The interest rate on student loans is higher than the interest rates on mortgages.”