The once-torrid demand for homes in the Boston area has cooled markedly this summer, and sale prices ― though still hovering near historic highs ― may be starting to soften slightly, according to an industry report released Tuesday.
The Greater Boston Association of Realtors, in its monthly analysis of home sales in the region, said the pace of transactions slowed from June to July. Housing sales were down 10 percent, while condominium sales fell by 12 percent.
Those declines came in the context of what remains a very active market, according to the association. The 1,423 condos sold last month were the highest ever in July, while home sales were the sixth highest on record — at 1,678. That compares with 1,572 single-family homes sold in July 2020.
Nonetheless, real estate agents say they are seeing a return to more normal market conditions after a spring season defined by breakneck growth in sales numbers and prices.
“After months of unprecedented demand dating back to last fall, we’ve seen a more relaxed pace to the market this summer,” Dino Confalone, an agent at Gibson Sotheby’s International Realty in Cambridge and the president of the realtors’ association, said in a statement.
“Since Memorial Day activity hasn’t been quite as strong as it was this spring, with some buyers pulling back to reassess the market and others opting to focus on vacation travel, family events, and other summer activities,” Confalone added.
Confalone also said there’s been a strong supply of new homes hitting the market this summer, “and that’s giving buyers more options and time to look for a home.”
Median prices for single-family homes dropped 10 percent from an all-time record high of $812,000 in June, the association said. The median price for condos, at $640,000, remained unchanged from June.
The realtors’ association also said pending sales of both single-family homes and condos declined in July, the first time that’s happened in 14 months
But Confalone said he believes conditions still favor sellers, and he anticipates an “influx” of listings after Labor Day.
“We expect housing demand to remain strong well into next year given the fact that large numbers of millennials are now entering their peak homebuying years, mortgage rates are still hovering near record lows, and the economy is steadily adding jobs once again,” Confalone said.