Have real estate prices in the Greater Boston area peaked?

Median sales prices for single-family homes and condos in Greater Boston broke records in July but were below what buyers paid in June, according to a report released Wednesday by the Greater Boston Association of Realtors.

The median sales price for a single-family home was $910,000 in July – $15,000 more than in July 2023, but $50,000 less than the median price in June 2024.

In the condo market, buyers paid an average of $740,000 in July, up $2,000 from July 2023 and $12,000 from June 2024.

Buyers' purchasing power has increased and “there are indications that prices may have peaked, at least in the short term,” the report says.

“What we are currently experiencing is not a price correction, but rather a softening of prices,” Jared Wilk, association president and broker with Compass in Wellesley, said in the release. “With the peak selling season behind us, we are seeing fewer bidding wars, more offers below asking price and homes taking longer to sell. As a result, sellers have become more flexible, and some are agreeing to price reductions in order to be able to sell.”

“Prices have also come down somewhat since their peak last month, suggesting that buyers have more room to negotiate,” Wilk added, “and that gives many new optimism as we approach the fall market.”

While there are some indications that prices are peaking, the year-to-date median selling price is still 7.1 percent higher than it will be at this point in 2023, the report said.

Condominium buyers pay $189 more per square foot than single-family home buyers, according to the report – $630 compared to $441.

Mortgage interest rates give and take

Mortgage rates falling from a high of 7.22 percent on May 2 may have played a role in the nearly 15 percent increase in sales and the 10 percent increase in local listings in the single-family home market in July compared to a year ago.

Available inventory in July was 1.2 months — a disappointing figure that suggests some sellers, unwilling to trade their low mortgage rates for those in the mid-sixths, are still hesitant to list their homes. Many experts agree that at least five months' inventory is a healthy market. High mortgage rates are also pushing some buyers into reserve as costs soar and their purchasing power dwindles.

“There's no denying that sales activity continues to lag behind historical norms, but it's also worth noting that last month was the busiest we've had in over a year for processing home and condo sales,” Wilk said. “Buyers have a wider selection of homes to choose from than they did last summer, and with mortgage rates lower than they were in the spring, the market has become increasingly attractive to prospective buyers.”

Condominium sales fell 1.2 percent, but the “monthly supply” of inventory rose from 1.7 in July 2023 to 2.1 last month.

“Although buyer demand has been dampened by higher interest rates, it continues to exceed the supply of homes for sale,” said Wilk. “This imbalance is putting continued upward pressure on sales prices and allowing for further price appreciation.”

Economic forecasters expect mortgage rates to continue to fall, but not below 6 percent. The average rate rose to 6.49 percent last week.

Real estate prices in Massachusetts are rising rapidly

The median sales price for a single-family home in the state rose 6.6 percent to $650,000 in July, according to a report released Tuesday by data analytics firm The Warren Group.

That's a record for the month, but home prices are losing momentum, said Cassidy Norton, the group's deputy editor and director of media relations: “Interest rates are more than double what they were two years ago, and I'm sure prices would be even higher without these changes. That's leading to a lack of inventory, which may have dampened price increases somewhat. Unfortunately, lack of inventory will continue to be the biggest price driver for the foreseeable future.”

Sales rose a modest 0.8 percent.

In Arlington, the median sales price for a single-family home in July was $1,142,500, down more than 11 percent. In Needham, the median sales price was $1,408,000, up 3.9 percent, according to the report.

In the condo market, sales rose 3.2 percent, and the average price rose only 1.8 percent year-over-year to $565,000.

“The median condo price also hit a new high in July, but prices were down slightly from the previous month,” Norton said. “This could be an early indicator that condo prices are beginning to stagnate.”

In Quincy, the median sales price for a home was $485,000, a decrease of nearly 5 percent. In Malden, the median sales price in July was $425,000, an increase of 6.3 percent.

Check out the city and county breakdown and the Warren Group's current sales list.