Massachusetts Homes Remain Under Pressure: Sales Plummet While Prices Hit Records
November Review: Massachusetts residential real estate saw dramatic shifts in November, with plummeting sales but record-high prices for both single-family homes and condos. The Warren Group, a leading data provider, reports that the market continues to be squeezed by limited inventory and elevated interest rates.
Single-Family Homes:
- Sales dive: November saw a 10.6% year-over-year decline in single-family home sales, with only 3,447 transactions compared to 3,854 in 2022. This marks the lowest November sales figure since 2011.
- Record-breaking prices: Despite the sales drop, the median single-family home price soared 8.4% to $579,900, a new high for the month. Year-to-date, prices have risen 4.0% to $572,000.
- Limited inventory: Cassidy Norton, Associate Publisher at The Warren Group, attributes the price hike to “pent-up demand due to limited inventory.”
Condominiums:
- Similar trends: Condos mirrored the single-family market, with sales falling 10.3% from 1,658 in November 2022 to 1,487 in 2023.
- Price plateauing?: However, condo prices showed a glimmer of hope for buyers, remaining steady at $500,000 for the past three months. Year-to-date, the median price rose 4.7% to $512,900.
Greater Boston:
- Sales slump: The Greater Boston market echoed the statewide trend, with single-family sales down 10.1% and condo sales down 10.7% year-over-year.
- Price increases: Single-family prices in the region climbed 6.9% to $700,000, while condo prices remained flat at $550,000.
Future outlook:
- Norton anticipates continued tightness in the market due to interest rates but predicts some relief in 2024 if the Federal Reserve lowers rates as planned.
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