The median home price in Greater Boston just hit $900,000 — an all-time high

Home prices in Greater Boston just got more expensive.

The median price for a single-family home hit an all-time monthly high of $900,000 in May, according to the Greater Boston Association of Realtors, which released its latest housing data Tuesday.

The median price tops the previous record high of $899,950 set last June, and represents a 2.9% increase from May 2022.

Condo prices also hit a record high — jumping to a median selling price of $726,002 in May. That's up 3.7% from April, and surpasses the previous record high of $717,000 set last April.

Lack of inventory and competition in the housing market are driving up prices, according Alison Socha, president of the Greater Boston Association Realtors. The few homes that are available for sale get multiple offers, Socha said.

"This really comes down to a long-standing production issue," Socha said. "We truly need to be able to build more housing so that we can meet the needs and the demand, really, of those buyers who are out there and want to call Greater Boston home."

Mortgage rates are also affecting housing turnover. Many people who already own homes benefited from significantly lower rates than those available today. They're less likely to put their homes up for sale, Socha said, because financing a new home purchase has become so much more expensive than their current mortgage — plus there is little available inventory to choose from right now, even if they did want to move.

Some new housing inventory did become available this spring, which led to a 35.5% increase in the number of home sales in May compared to April, according to the Greater Boston Association of Realtors. But home sales were down year-over-year for May.

Socha said the new inventory is still "not nearly enough" to meet the demand of all the buyers who want to call Greater Boston home.

Low inventory and higher home prices are also a statewide issue. According to the Massachusetts Association of Realtors, single-family home listings were down 19% in May compared to the year before. Additionally, the median sales price for a home also ticked up slightly statewide to just over $616,000 last month, according to the organization.