House prices continued their surge in Greater Boston last month, with the typical single-family house now costing nearly $725,000 — the highest on record — and the supply of properties for sale remaining at rock-bottom levels.
The median price for single-family homes in the region jumped 14 percent compared with March 2020, to $723,750, while the number of homes on the market fell by one-third, according to the Greater Boston Association of Realtors. Condominium prices, by contrast, dipped slightly, down two-tenths of a percent to $617,500, while condo listings increased by 30 percent.
It’s a microcosm of the supply-and-demand story that has defined Boston’s housing market since it emerged from last summer’s pandemic lockdowns. Buyers looking for more space flocked to suburban towns, but found little there to buy, prompting bidding wars that have driven prices skyward.
“With listings at a premium, it’s an incredibly competitive market with buyers far exceeding the supply of homes for sale,” said Dino Confalone, an agent with Gibson Sotheby’s International Realty in Cambridge. “That’s enabling sellers to ask top dollar and also creating bidding wars, both of which are pushing prices higher.”
In more urban pockets of the region, such as central Boston, the number of listings is higher ― mostly condos ― and price increases have been less dramatic. That’s providing opportunities for would-be buyers who want a home in the city, Confalone said, Several Boston condo developers said interest in home tours is up this spring.
Sales, both closed and pending, are on the upswing, though year-over-year comparisons will be difficult this spring because the pandemic began in March 2020, causing what amounted to a housing market paralysis.
Still there are signs the market could be starting to loosen up. The number of single-family homes that were newly listed in March climbed 8 percent, compared with the same period in 2020, while new condo listings jumped 48 percent.