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Home Buyer Blues in Massachusetts: Sales Plummet to 12 year low While Prices Hit Record Highs

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2023 brought a double whammy to the Massachusetts housing market: a 22.4% plunge in single-family home sales and a record-breaking surge in median sale prices.

Some Key Data Points:

  • Single-family home sales: Lowest since 2011, down 22.4% from 2022.
  • Median single-family home price: Up 3.6% from 2022 to $570,000.
  • Condo sales: Lowest since 2012, down 18.7% from 2022.
  • Median condo price: Up 4.4% from 2022 to $510,000.
  • “Limited inventory and high interest rates are the driving force behind this trend,” said Cassidy Norton, of The Warren Group.
  • “As demand outpaces supply, home prices continue to climb, making it increasingly difficult for many to enter the housing market.”
  • “The condo market followed similar trends, with buyers willing to pay a premium for convenience and lifestyle.”

Greater Boston:

  • Single-family home sales down 23.8%, year-end median price up 2.9%.
  • Condo sales down 18.2%, year-end median price up 3.3%.

What’s Next?:

  • Market watchers are unsure if the trend will continue in 2024.
  • Affordability remains a major concern for potential buyers.

Call to Action:

  • Contact Robb Enterprises today for more information on the market and our creative ways of finding you a property to move into or invest in.

 

 

 

information and statistics partially provided by The Warren Group

November: Massachusetts Homes Remain Under Pressure: Sales Plummet While Prices Hit Records

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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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Massachusetts Single Family Market Insights ’23 Q3

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We all have felt the supply crunch over the last couple years, but it just seemed to increase in intensity in Q3 this year. Looking at the single-family market, in Q3 2023, we were running an average of 4,170 homes available. This same period last year, we averaged 5,574. That is a 25.2% decrease in available homes! 

On a national level, you will hear that available inventory is on the rise, which is true. However, there is more to the story. Months supply of inventory is calculated by finding the total number of active listings and then dividing by the average number of monthly sales. According to NAR, total sales on a national level were down to 4.04 million through August, which is a decrease of more than 15% compared to last year. As the number of home sales drops, the number of listings needed to keep inventory levels flat drops as well. 

With the inventory crunch, we are still seeing prices appreciate as a whole. The single-family median sales price rose 5.21% compared to Q3 2022. That was an amazing increase with mortgage rates at a 27-year high during the same period. As always, real estate is a local business, and I have seen some local markets’ average prices decrease in Q3. It could be the mix of properties closing, and it could also be adjustments to the higher rates hitting certain markets more than others. The key is to be sure of your primary markets by using our market reports here in Pinergy. You may be surprised at the local story being different than the national results. 

Sale-to-list price ratio in Q3 climbed up compared to Q3 2022 as well, 102.08 compared to 101.70—not far off from 103.79 in Q3 2021. This tells me that competition is on an upswing while fewer homes are available and that the demand for housing still outweighs the available inventory, pushing prices up. Buyers will need to act quickly to stay competitive in this market. 

Finally, with the number of closed single-family units dropping 24.68%, the Q3 sales volume dropped to below 2019 levels. While this isn’t the news we want to hear, we can be encouraged by the opportunities sellers have to list in a very hot market with a very focused buyer pool ready to act.

We learn each year is different on some level, and this year has proven that again. I still believe this market holds great opportunity that can be very positive for sellers and buyers in the right situations. I wish you all the best for a prosperous and strong finish to 2023!

Feel free to give us a shout to discuss your market or real estate plans. We look forward to hearing from you. (508) 258-9589 or Contact Us

Posted with help from MLS Property Information Network, Inc.

Massachusetts Single Family Market Insights ’23 Q2

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As the second quarter of the 2023 real estate market comes to a close, it is time to take a look at what transpired. Let’s take a look at some statistics and wrap it up without overcomplicating it. We will discuss interest rates in a different post, however, they are a key driver in what’s happening in the market.

  1. Over the past 5 years, the sales volume is down while the sales price is up. The days listed on market is up this year, but still in line with the past two years staying under a month.
  2. Inventory is way down this year which has driven up single family home prices.
  3. Weekly active listings confirm the overall inventory shortage.
  4. Hover over the black dots to see the Sale to List price ratio. This shows us that the limited inventory is still causing multiple offer scenarios pushing the sales price above the list price.
  5. Even though the sale prices are up, the total dollar volume is down due to the lack of inventory and less sales over the past couple of years.
  6. Same as before, less monthly listings results in less sales in comparison to last year.
  7. Similar to the previous slide, just expanded to see the data in a weekly format rather than monthly. You can also see that there is a very similar weekly purchase trend as last year, just that the volume is down.
  8. Days on market for sold listings is up from last year, but only by a week, still leaving homes on the market for under a month before ACCEPTING an offer and the property going under agreement (UAG).
  9. Days to offer is just that, how many days on the market before receiving an offer. The days to offer will be lower than the days on market since days will be added to the offer time before accepting the offer and the property going under agreement.
  10. This is a monthly breakdown of the first slide of sales volume.
  11. Change in sales volume by zip code. If you have a question about your specific town, send us a message or give us a call to discuss your market.
  12. Same interactive map as the previous slide, this one just shows the percent change in transactions year over year.

 

Feel free to give us a shout to discuss your market or real estate plans. We look forward to hearing from you. (508) 258-9589