Business

Value of Mass. homes, condos climbs in June

Tight supply, eager buyers push prices

Home values statewide continued to soar last month as limited inventory and eager buyers combined to push up prices.

The median cost of a condominium jumped to a record $320,000 in June, 3.2 percent above the June 2012 level and the highest monthly number ever for Massachusetts condos, according to data released Tuesday by Warren Group, a Boston company that has tracked local real estate since 1987.

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The median value of a single-family home also rose last month, to $350,000. That was 9 percent higher than the price in June of last year and the highest median value since August 2007, Warren Group reported.

The Massachusetts housing market is following a national upward trend. The median price for all types of existing housing across the United States rose to $214,200 in June, a 13.5 percent increase compared with the same period last year, the National Association of Realtors said.

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June marked the 16th consecutive month of year-over-year price increases nationwide, according to the real estate group.

But many housing specialists believe that streak may be about to stall. They say skyrocketing home prices won’t continue much longer.

Lawrence Yun, the National Association of Realtors’ chief economist, said increases in home values will likely slow next year to the single digits, stalled by higher interest rates and the inability of some prospective buyers to pay hefty mortgages.

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“The second half of next year, prices will start to stabilize,’’ Yun said.

Svenja Gudell, a senior economist with the online real estate company Zillow Inc., shares that view. She said recent price hikes will scare away investors and attract more sellers, helping to moderate the pace of increases.

“More inventory is slowly but surely coming on line,” Gudell said.

Meanwhile, some say tight inventory is more attributable to quick sales turnover than a lack of sellers.

In June, 5,591 single-family homes were sold in Massachusetts, a 1 percent increase compared with June 2012 and the highest number of sales in any month since June 2010, according to Warren Group.

Condo sales totaled 2,189 last month, down more than 3 percent from the same period in 2012.

For the first six months of 2013, however, condo sales are actually up nearly 2 percent compared with January through June of last year, Warren Group reported.

“The housing market continues to boom locally and nationally,’’ said Timothy M. Warren Jr., chief executive of Warren Group. “Buyers have come out to the market in droves and aggressive bidding is driving up prices.”

Jenifer B. McKim can be reached at jmckim@globe.com. Follow her on Twitter @jbmckim.
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