Worcester makes Realtor.com’s top real estate markets of 2023 list

by Liz Hughes

One Massachusetts city made Realtor.com’s list of top real estate markets of 2023: Worcester. 

Realtor.com selected the top 10 housing markets poised for growth in the new year based on housing and economic data in the 100 largest metros. These markets offer lower-priced, affordable homes with median prices under the national median. Additionally, these areas have plenty of sales activity happening. 

“They are very affordable markets,” said Realtor.com chief economist Danielle Hale. “These are areas where your housing dollars really stretch further. These places did not overheat during the [COVID-19] pandemic housing frenzy over the last two years. That puts them on more solid footing. Prices and sales still have more room to grow.”

Worcester ranked fourth on the list with a median home-list price in November of $447,500. Home prices in the city are expected to grow 10.6% in 2023, with a 2.5% increase in sales. 

The report notes Worcester continues to be much more affordable than Boston, making it a popular destination for both buyers and investors. To compare, Boston-area homes have a median value of $739,900. 

Worcester’s market is not without change. As others have throughout the Bay State, the market has slowed as mortgage rates grew. Additionally, the relocation of buyers from other parts of the country has also fallen, according to real estate broker Nick McNeil of McNeil Realty. 

“For the first time in 10 years, I can no longer tell somebody it’s cheaper to buy a home than it is to rent,” said McNeil. “People who absolutely have to buy are buying whatever they can afford.”

Those looking to settle in the Woo are typically looking at two-family homes or inexpensive starter homes for first-time homebuyers priced between $300,000 and $325,000, according to McNeil.

Hartford-West Hartford, Connecticut, took the top spot on the list, followed by El Paso, Texas, and Louisville, Kentucky. 

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