The summer of 2022 was a challenging one for the Massachusetts real estate market as homebuyers and sellers alike took a big step back amid rising interest rates and recession fears. 

The Massachusetts Association of REALTORS® August Housing Statistics Report, citing the National Association of REALTORS, said nationally, housing affordability fell to a 33-year low as home sales continued to fall, down 20.9% from last year. That decrease in demand also impacted construction projects, slowing down building plans. 

“While inflation continues to be a major concern for those looking to enter the market, I am hopeful that it will begin to decline,” said Dawn Ruffini, 2022 President of MAR and REALTOR® at RE/MAX Connections. “As inflation rates decline, we will begin to see more entrants into the market and a shift in a buyer-friendly direction.” 

Last month, the median price for a single-family home fell 1.32% from July to $599,000, and new single-family home listings fell 12.06%. 

Condominium prices also fell in August, dropping to $497,400, which represents a 6.15% drop from the previous month, while condo listings fell 18.68% from July. 

The report also found single-family closed sales were up 6.68% from July, while closed condo sales rose just 0.41%.