Industry News

Demand softens for Massachusetts real estate

Prices fall amid rising interest rates, inventory

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Sales of detached single-family homes and condominiums declined across Massachusetts for a second consecutive month in May compared to year-ago levels, as higher mortgage rates, slow income and job growth, and a record number of homes for sale this spring prompted buyers to proceed more cautiously before purchasing a home, according to a report issued Tuesday by the Massachusetts Association of Realtors. In the detached single-family home market, sales fell 2.9 percent last month, from 4,175 homes sold in May 2005 to 4,055 this May, while condo sales slipped 1 percent in the past year, from 2,134 units sold last May to 2,113 in May 2006. Despite the more moderate sales pace, activity in the state's housing market remains quite strong by historic standards, MAR reported. In fact, the 2,113 condos sold last month is the second-highest sales volume on record for May in state history, topped only by the May 2005 sales total, while the single-family market enjoyed its eighth-busiest May on...