High Prices, Low Inventory: MA Homes Sales Hit 12-Year Low: Study

MASSACHUSETTS — A mix of high interest rates, low inventory, and high prices has led to a steep drop in the number of home sales in Massachusetts.

A study from the Warren Group found that single-family homes were at a 12-year low in Massachusetts last year. In 2023, sales of single-family homes were 22.4 percent lower than in 2022.

At the same time, the median single-family sale price increased 5.9 percent on a year-over-year basis to $540,000, a new all-time high for the month of December, according to the Warren Group.

“With 40,828 single-family home sales in 2023, we’ve witnessed a staggering 22.4 percent decline from the previous year, marking the lowest number of sales since 2011,” Cassidy Norton, associate publisher and media relations director of The Warren Group, said in a statement. “Limited inventory and high interest rates are the driving force behind this trend, with prospective buyers facing a challenging landscape. As demand outpaces supply, home prices continue to climb, making it increasingly difficult for many to enter the housing market.”

Read the full report at The Warren Group.

The news was similar in the condominium market, where there was a 18.7 percent drop in sales from 2022 to 2023. Condo prices have also increased by 11.6 percent over the last year.

The Warren Group found similar trends in a report last fall.

Gov. Maura Healey made promises to tackle the state's housing crisis on the campaign trail. She was expected to discuss the housing crisis in her State of the State address Wednesday. Healey has prioritized passing the Affordable Homes Act to assist first-time homebuyers and renters, WCVB 5-ABC reported.