Massachusetts single-family home sales fell to a 12-year low in 2023, according to a new Warren Group report.

Limited inventory and record-high prices led to the decline, further straining the Bay State’s real estate market. 

December single-family home sales fell 18.4% from 2022 to 3,150, marking the lowest sales for the month since 2008. Meanwhile, the median single-family sale price increased 5.9% to $540,000, a new high for the month. 

Cassidy Norton, associate publisher and media relations director of the Warren Group said the 40,828 homes sold in 2023 represents a “staggering” 22.4% decline from 2022 and is the lowest number of sales since 2011.

“Amid this decline in sales, the year-end median single-family home price has climbed 2.6% to a record high of $570,000,” Norton said. “Limited inventory and high interest rates are the driving force behind this trend, with prospective buyers facing a challenging landscape. As demand outpaces supply, home prices continue to climb, making it increasingly difficult for many to enter the housing market.”

Condominium activity followed similar trends.

December condo sales dropped 13.8% to 1,350 transactions, compared to 1,567 in December 2022, the lowest number of condo sales since 2012. For the year, 19,199 condos sold across the state, down 18.7% from 2022. Meanwhile, December’s median sale price increased by 11.6% from a year earlier to $496,744, marking a new high for the month. For the year, the median sale price was up 4.4% to an all-time high of $510,000.

“This scenario underscores the evolving dynamics of the condo market, where buyers are willing to pay a premium for the convenience and lifestyle they offer,” Norton said. “It also prompts us to consider the changing preferences and priorities of homeowners in Massachusetts, as they seek both quality and value in their housing choices.”