MA Home Sales Reached A New Low In 2023 While Prices Soared

MASSACHUSETTS — The Massachusetts home market was a minefield for both sellers and buyers in 2023.

According to a new report from The Warren Group, single-family home sales fell to a 12-year low in 2023, with limited inventory and record-high prices to blame for the drought.

There were 40,828 homes sold across 2023, The Warren Group found. That's a 22 percent decline from 2022 when 52,639 homes were sold in the state.

This figure indicates a steep decline from previous years too, as the company said the 2023 figure marked the lowest number of home sales since 2011.

So if sales are low, does that mean prices decreased at least? Sure doesn't.

The median single-family home price in 2022 was $550,000. That number rose 2 percent in 2023, bringing the median price to $570,000.

The combination of limited sales and a continuing spike in prices presents big problems for buyers, especially those entering the market for the first time, Warren Group Associate Publisher and Media Relations Director Cassidy Norton said.

"Limited inventory and high interest rates are the driving force behind this trend, with prospective buyers facing a challenging landscape," Norton said. "As demand outpaces supply, home prices continue to climb, making it increasingly difficult for many to enter the housing market."

This trend wasn't unique to just the home market, as condo sales were down in 2023 and prices continued to climb.

There were fewer condos sold in Massachusetts — 19,199 — than in any year since 2012, while the median condo price rose to $510,000 from $488,550 in 2022, a 4.4 percent increase.

The price increase should be studied as a trend in what buyers are looking for in their home purchase, Norton said.

"This scenario underscores the evolving dynamics of the condo market, where buyers are willing to pay a premium for the convenience and lifestyle they offer," Norton said. "It also prompts us to consider the changing preferences and priorities of homeowners in Massachusetts, as they seek both quality and value in their housing choices."

The 2023 median price for both condos and home sales is a record high in The Warren Group's data, the company said.

New for the company's December data review is a dive into the Greater Boston market, which reviewed the 139 towns located within the I-495 corridor.

The area followed the same trends as those across the state, with a nearly 24 percent decline in single-family home sales in 2023 compared to 2022 while the price of those homes increased from $695,000 in 2022 to $715,000 in 2023.

Condo sales were down 18 percent from 2022, with a total of 13,874 sold in 2023 compared to 16,967 in 2022. The median condo price in the area in 2023 rose to $599,000 compared to $579,696 in 2022.

Town-by-town statistics from The Warren Group can be found at the link here.