New Home Prices In MA's Biggest City Outpacing Prior Years

MASSACHUSETTS — New listings for homes saw the highest year-over-year increase in three years during the four weeks ending May 18, according to a new report from Redfin that highlights the Boston Metro area.

Overall, new home listings rose 8.4 percent from the same period a year ago. There was a 2.2 percent fall in pending sales — the lowest since Redfin began tracking sales in 2015 —and 5 percent week-over-week decrease in home mortgage applications. Those factors are causing inventory to pile up, experts say. The online real estate brokerage said the total number of homes for sale across the country increased by 14.3 percent.

The median home price declined in 10 metros, the number of pending sales increased in 12, and new listings declined in six.

New listings in Boston, however, rose by more than 15 percent year-over-year according to Redfin's data. The number was higher than all but two metro areas, with just Washington D.C. and Houston above the city.

Redfin said fewer Americans are choosing to buy in an atmosphere of high prices and economic uncertainty. The median monthly housing payment hit an all-time high of $2,882, with a 1.7 percent year-over-year increase in home prices and near-7 percent mortgage rates contributing to high costs, Redfin said.

The real estate company cited a University of Michigan consumer sentiment poll showing Americans are worried about a trade war and a recession and said even those who can afford to buy a new home are reluctant to do so in the current environment.

The high cost of living and uncertainty about the economy are contributing to the increase in listings, Redfin said.

Some sellers want to save money by moving to a smaller home or less expensive area. Others are listing because they believe home prices will start declining soon, some see the surge in inventory and want to get their home on the market before there is more competition, and some people need to sell, regardless of market conditions, because of a major life event, the real estate company said.

“Clients are asking me to call them when we’re at a tipping point, because they want to sell before prices drop,” said Hazel Shakur, a Redfin Premier agent in Maryland. “My advice to homeowners: If you’re planning to sell in the next year or two, do it now because we don’t know what’s going to happen with home values or the larger economy.”

In a separate report, Redfin forecast a 1 percent dip in home sale prices by the end of 2025. Aside from a brief period in 2023, home prices have been rising since 2012, making it a seller’s market.

That appears to be changing,

“Buyers should know that because of the uncertainty in the air, they may be able to get a home for under asking price, or get concessions from the seller,” Shakur said.