MA Housing Prices Set New Record, Even As Market Cools: Report

WORCESTER, MA — The frenzied pandemic-era housing market in Massachusetts appears to be cooling off as mortgage interest rates rise nationwide — but prices are still reaching new highs, according to the latest Warren Group report on home sales in the state.

In July, the median single-family home price hit $585,000 in Massachusetts, a record high for that month. At the same time, single-family sales volume was down about 23 percent compared to July 2020.

Sales of condominiums were also down last month, according to the report: 2,201 condos sold in July compared to 2,487 in July 2020.

A combo of expensive loans and low supply is causing the dissonance between prices and sales, according to the Warren Group.

"Mortgage rates are now over 5 percent, while a year ago they were under 3 percent. The single-family home median price is $45,000 higher than a year ago. Increases in wages and salaries are not keeping pace with inflation that is now running at 8.5 percent. Plus, homebuyers face a very low inventory of homes for sale. All this leads us to a cooler real estate market," said Warren Group CEO Tim Warren said in the July housing market report.

The U.S. 30-year fixed mortgage rate stood at 5.125 percent on Tuesday.

The number of single-family sales were down in every county in the state compared to July 2021. Worcester and Franklin counties were the only two where sales declined less than 12 percent, at 11.3 and 10.8 percent, respectively.

Cities and towns in and around Boston continued to dominate in high prices. Here's a look at the 10 communities with the highest median sales prices in Massachusetts in July, according to the Warren Group:

• Boston $3.875 million
• Nantucket $3 million
• Brookline $2.210 million
• Cambridge $2.016 million
• Winchester $1.987 million
• Cohasset $1.925 million
• Wellesley $1.867 million
• Lincoln $1.851 million
• Belmont $1.8 million
• Lexington $1.75 million