Massachusetts homebuyers are priced out of the market [OPINION]

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The average price of a single-family home in Massachusetts is an all-time high of $ 509,000 – according to the Warren Group, which closely monitors this stuff for the industry. As a result, single-family home sales fell 10.4% last month compared to September 2020, but remains 14.7% higher than in September 2019.

Warren Group CEO Tim Warren said the $ 509,000 price tag is 7.4% higher than the September 2020 average price of $ 474,000 and 27.8% higher than the September 2019 median price of $ 400,000.

A caller to my program with knowledge of the real estate industry said that the current sale price is probably an average monthly mortgage payment of at least $ 2,500. He estimated that this could amount to more than two-thirds of a mortgage holder’s monthly income.

The caller said credit institutes and even homebuilding trade groups are buying new single-family homes as cover in case the current housing bubble bursts, which he says will happen sooner rather than later.

Tim Warren told the State House News Service that the main reason for the drop is that the typical price of a house in Massachusetts has climbed “too high and too fast.”

“There aren’t a lot of people out there who are still looking for a home that can afford what homes cost these days,” he said.

“The median price of a single-family home has increased almost 18% so far this year, and that comes on top of an 11% gain last year. And prices have gone up every year for the past decade, Warren said. too expensive for most people. “

The Warren Group reported that condo prices have also skyrocketed. The average price of condominiums rose 6.7 percent in September to $ 445,000. This is the 14th consecutive month with a median selling price above $ 400,000.

My interviewer told me that the bubble is about to burst, and when it does, it will rival the real estate crisis of 2008, when millions of people lost significant value from their investment or property. .

Barry Richard is the host of the Barry Richard Show at 1420 WBSM New Bedford. It can be heard on weekdays from noon to 3 p.m. Contact him at [email protected] and follow him on Twitter @ BarryJRichard58. The opinions expressed in this commentary are solely those of the author.

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