The Bay State housing market is cooling as sellers are holding off until conditions improve to sell their homes. 

The Massachusetts Association of REALTORS® October housing report found economic factors are behind the shift, and while many sellers are holding off, those who are staying in the game are slashing prices and offering concessions to attract more potential buyers. 

Meanwhile, those factors have led to national declines in home sales and October was the eighth consecutive month of declines, as buyers and sellers are faced with affordability obstacles. 

“While the market has cooled and sustained increases in mortgage and interest rates might have an impact on closed sales and even listing prices, there have been no recessionary occurrences in the market thus far,” said Dawn Ruffini, 2022 president of MAR and REALTOR® at RE/MAX Connections. “A lack of inventory continues to be the greatest problem facing housing in Massachusetts. This paired with the aforementioned economic factors continues to increase the barrier to entry for prospective homebuyers.”

Last month, the median price for a single-family home fell by 4.04% year over year to $547,000, while new single-family home listings decreased by 18.34%.

Meanwhile, condominium prices rose 0.94% in October to $484,500, while condo listings fell 28.03%. 

The report also found that single-family closed sales fell 17.72% compared to last year, while closed condo sales dropped 10.59%.