By Colin A. Young, State House News Service
The median home price in Massachusetts hit its highest mark ever for the month of May and analysts say the steady rise in price stems from low inventory, a seemingly chronic issue in the state's housing market.
The Warren Group reported Tuesday that the median sale price of a single-family home in May increased 6.9 percent to $370,000, the 14th consecutive month with a year-over-year increase.
There were 5,396 single-family Massachusetts homes sold in May, a 1.5 percent increase over May 2016 and the highest total for May since 2004, according to the Warren Group.
"Though single-family sales are on the rise, they're not rising as swiftly as the median price, which smashed the previous record of $352,500 from May 2005," Timothy Warren, CEO of the Warren Group, said in a statement. "Low inventory of homes for sale has many industry experts on edge. Buyers are finding very little choice and are forced to bid aggressively to make a purchase."
Through May of this year, single-family home sales are up 0.6 percent compared to the first five months of 2016, while the median price is up 6.8 percent, the Warren Group said.
The median condo sale price also hit its high mark for the month of May last month, climbing 8 percent to hit $361,750, according to the Warren Group. Condo sales increased 9 percent last month, with 2,430 units sold.
"As prices continue to climb at a dizzy pace, condos are an increasingly viable – and desirable –option for many first-time buyers," Warren Group Editorial and Media Relations Director Cassidy Murphy said in a statement. "But with a median price within $10,000 of the single-family median, condos may not be an affordable option for much longer."