MA Home Prices Hit All-Time High While Sales Drop To 13-Year Low

MASSACHUSETTS — Conditions continue to be ideal for sellers but tough for buyers in Massachusetts' real estate market.

Home prices keep going up but single-family home sales dropped to a new 13-year low. A report from the Warren Group found that the state hit record highs for condo and single-family home prices in September.

The median single-family home price increased 2.7% compared to the same period last year, hitting $565,000 last month.

Meanwhile, there were only 30,665 single-family home sales in Massachusetts in the first nine months of 2023. This marks a 24.6% decline compared to the first nine months of last year and a 13-year low.

Condo sales are witnessing similar trends. Year-to-date condo sales are at 14,799, a 20.7% decrease from last year. The median price for a condo in September 2022 was $460,000. Last month median condo prices hit $500,000.

Nearly every county in the state saw a drop in the number of sales and an increase in home values.

These trends combined with high interest rates makes things rough for those looking to buy a home. Interest rates on a 30-year fixed mortgage stand at 7.8%, according to Bankrate.

"There are still a number of hurdles for prospective buyers in Massachusetts, and this is reflected in our sales data," Cassidy Norton, Warren Group's associate publisher and media relations director, said in a statement. "Low inventory, record high prices, and rising interest rates have made it progressively more difficult for buyers to purchase homes, regardless of where they're looking."

The report also includes analysis of real estate markets throughout the state. Things look bleak in the Greater Boston area: there was a 30% drop in single-family home sales in September of this year compared to last year. The median single-family home price in the 139 towns that comprise the area increased 3.3% compared to last year, climbing to $705,000.