MA Home Sales Drop With Economy Squeezing Buyers: Report

MASSACHUSETTS — The gold rush housing market of the early pandemic years appears to be slowing in Massachusetts.

The Warren Group's monthly report on home sales in the Bay State released Tuesday showed double-digit declines in single-family and condo sales in September compared to just two years ago. A combination of low inventory and tough economic factors have combined to make buying a home more difficult, Warren Group CEO Tim Warren said.

"Single-family sales numbers took another hit in September as limited inventory, economic
uncertainties, and rising interest rates continued to weigh heavily on prospective buyers," he said.

The interest rate on a 30-year mortgage was averaging just under 7 percent as of Oct. 13, according to Freddie Mac. In September 2020, the average rate was bout 2.93 percent. Compared to September 2020, single-family sales were down statewide 24.5 percent, and condo sales down 23.3 percent, the report said.

Home prices were still on the rise, however. The statewide median price of a single-family home in Massachusetts hit $550,000 in September — about $75,000 higher than September 2020.

Some parts of the state were faring better than others compared to September 2021, according to the report. Single family sales were only down 6.6 percent in Berkshire County, 3 percent in Franklin county and 9.5 percent in Hampden County. Essex County was also better shape than much of the state, with sales down just under 10 percent.

Most counties in the eastern half of the state were in worse shape. Suffolk County single-family sales were down over 26 percent, and sales were down 14 percent in Worcester County. Middlesex and Norfolk counties were down 17.6 and 15.5 percent, respectively.