2023 Massachusetts Real Estate Market in Review
There are a lot of reasons why someone would want to live in the Commonwealth of Massachusetts. One of those many reasons is the top colleges and universities. Similarly Massachusetts has a high reputation for consistently excellent public schools across the commonwealth. Top ranked-school districts include, Wellesley, Newton and Lexington Public Schools.
Likewise, Massachusetts is also known for being home to a world-class healthcare system. According to U.S. News and World Report, Massachusetts is currently ranked third in the country for its health-care system. Some of the country’s best hospitals are located right here in Boston, and they include Massachusetts General Hospital to Children’s Hospital Boston.
Generally speaking, it has been quite the year across the commonwealth in terms of real estate. Here is a wrap up of major contributors to market dynamics over the last year, and what to be aware of going into 2024.
Median Prices Rose
Median home prices across the market for both condos and single-family homes went up by 5.3%. Single-family homes hovered around $600,000 whereas condos sat at around $517,000. This poses a problem for folks looking to buy a house for the first time, as it’s likely these buyers will be priced out of the market almost completely.
The closed sales of both single-family homes and condos dropped by 28.4% and 12.8% respectively, according to a report done by the Massachusetts Association of Realtors. It’s important to note that prices are going up, inventory is low and most folks who currently own their own home are not selling. This poses a problem for agents looking to sell homes to first time home buyers who already feel like they can’t participate due to high mortgage rates and high down payments.
Where Are The New Listings?
It’s hard to buy a home if there are none on the market. Generally, for both single-family homes and condominium units, the amount of new properties listed on the market went down. Single-family homes saw a decrease of 15% and condos dropped by 9.5%. This is something of a conundrum. One of the reasons new homebuyers are unable to enter the market is because fewer people are selling their homes. In an article from CNBC, 40% of folks between the ages of 25 and 44 who bought a place last year are planning to live there for 16 years or more. This is according to data collected by the NAR. In the same data set that number goes up to 48% for folks aged 18 to 24.
The real estate market in Massachusetts continues to see rise in prices for homes. With it being a seller’s market, real estate agents might think it’s going to get easier but competition to get listings has risen. With agents becoming more savvy with new technology and marketing tactics, it’s going to be even more important for agents to be a step ahead of the game and bring fresh perspectives to sellers.