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Mass. Home Sales Up Despite Continued Price Escalation

This article is more than 7 years old.

Home sale prices in Massachusetts rose for the eighth straight month in May but that did not dissuade buyers.

The Warren Group reported Tuesday morning that home sales increased more than 6 percent in May to the highest level of transactions for the month since 2006. Despite the bump in activity, home sales over the first five months of 2013 are down less than 1 percent compared to the same period in 2012.

The median price for single-family homes sold in May increased almost 12 percent to $324,500 from $290,000 a year ago. Year-to-date, the median sale price of a single-family home in Massachusetts is $300,000, which is 11 percent higher than the $270,000 median price recorded during the same period in 2012.

"The rise in prices has been a result of tight inventory," Warren Group CEO Timothy Warren Jr. said in a statement. "It's concerning to see prices rise at this rapid rate. Pent-up demand for homes from buyers who postponed their purchase plans is driving up prices. Consumers are rushing to buy before prices and interest rates get too high."

This program aired on June 25, 2013. The audio for this program is not available.

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