Massachusetts home prices fall year over year for first time since 2018

by Liz Hughes

Massachusetts single-family home and condo prices fell for the first time since 2018, according to a new Warren Group report. 

The median single-family sale price declined 1.2% to $553,500 in April, down from $560,000 in April 2022, the first time prices fell on an annual basis since 2018. The number of homes sold also took a tumble. Last month, 2,897 single-family homes sold in the Bay State, down 25.3% from 3,877 in April of 2022. 

Cassidy Norton, associate publisher and media relations director of The Warren Group, said April saw a notable decline in sale prices, and last month was also the first time the median sale price decreased in five years. 

“Limited housing inventory was a persistent hurdle, constraining buyer options and intensifying competition,” she said. “The scarcity of available properties may have prompted hesitant homeowners to delay listing their homes, further exacerbating the supply-demand imbalance. Economic factors also contributed to the declining market performance. Historically higher mortgage interest and inflation rates added an element of caution among prospective buyers. The upward pressure on borrowing costs dampened affordability and consequently tempered demand.”

Since January, 10,088 homes sold, down 25.9% from the first four months of 2022. During the same period, the median single-family home price rose 2.9% to $525,000.

The median condominium sale price and number of units sold also declined in April. Last month condo sales fell 30.2% to 1,500 condos sold compared to 2,149 last April. Meanwhile, the median sale price fell 3.1% to $513,500 in April. 

“As has been the case all year, the Massachusetts condo market saw a significant decline in sales in April,” Norton said. “The market’s response was further underscored by a 3.1% decrease in prices, indicating a shift in demand and supply dynamics, although that may be temporary. The decline may offer opportunities for potential buyers to enter the market at a more favorable price point.”

So far this year, 5,217 condos sold across the state, down 26.6% from 2022, with a median sale price that’s up 4.3% to $490,000.

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