Massachusetts housing market shows signs of recovery

by Liz Hughes

The Bay State real estate market slowed in December, as lack of inventory and diminished purchasing power kept prospective buyers away, but it’s showing signs of recovery, according to the Massachusetts Association of REALTORS®  December 2022 housing report.

The report found despite a decrease in sales prices from November, buyer demand continued to outpace supply.

Single-family home sales saw a slight increase in closed sales, but it wasn’t enough to offset the decline in inventory across the state, as well as rising mortgage rates.

MAR found the decline of inventory in Massachusetts aligns with national declines the market has been facing since October. Although median sale prices fell slightly in December, affordability remains a factor for many prospective homebuyers still faced with diminished buying power from high mortgage rates, making for even higher monthly mortgage payments. 

“While there is reason for optimism, lack of available inventory continues to be a concern for the Massachusetts housing market,” said David McCarthy, 2023 MAR president and REALTOR at Keller Williams. “Buyers and sellers alike, as sellers are unwilling to give up the historically low rates they locked in and decide to wait until market conditions improve, further limiting the inventory available to prospective buyers in the state.”

Last month, the median price for a single-family home fell 3.2% from November to $535,000, while new, single-family home listings decreased by 50.8%. Condominium prices also dropped, sliding 6.5% from November to $453,800, while condo listings fell 47%.

The report also found that single-family closed sales rose 1.5% compared to November, while closed condo sales dropped 2.6%. Year over year, single-family closed sales fell 30.5%, while condominium sales fell 34.8%.

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