(WWLP) – The Realtor Association of the Pioneer Valley has released its report on the housing market for August.

Home closings have decreased however, they’re still selling for more money compared to August 2021. The median sale price for homes was $321,250, which is 9.3% higher than last year of $294,000.

Realtor Association of Pioneer Valley

There were 550 homes sold in August this year, which is down 8.8% over August 2021 with 603 homes sold in Franklin, Hampden, and Hampshire Counties.

The inventory of available homes for sale in August was down 29.7% with 716 on the market versus 1,019 homes on the market in August 2021.

The average time on the market dropped by 8.7% year-over-year, down to just 26 days.

A 30-year mortgage averaged 5.22% with an average .8 points for the last week of August. According to the report, a 30-year mortgage averaged 2.847% with an average .7 points in 2021.

David Murphy is a Broker and Owner of The Murphy’s Realtors. He told 22News inventory can have a major effect on prices, “Inventory is going down. Even just creeping down, it’s going down. But over 9 percent increase is substantial year to date so things are getting more expensive and the supply is trickling lower and lower and lower.”

So why aren’t more homes being built? Murphy said while inventory was an issue before the pandemic, the costs associated with construction have also jolted in the last two years.

And with the federal reserve raising interest rates, those effects are being noticed when it comes to mortgage rates, averaging 5.22 percent locally.