Massachusetts Home Buyer Guide

Is the Massachusetts real estate market finally slowing down? The answer will be revealed over the next six to twelve months, but home sales, while still relatively strong, are definitely not as strong as the first half of 2016. 

Massachusetts single-family home sales declined 4.4 percent to 4,913 in October compared with 5,138 houses sold in October 2015; however, through the first 10 months of the year sales increased 10.8 percent to 50,561 homes sold, The Warren Group, publisher of Banker & Tradesman, reported November 29, 2016. October was only the second time in 2016 that single-family home sales declined on a year-over-year basis. Both monthly declines in sales occurred in the last four months. 

Despite the slowdown in sales, tight inventory has pushed median home prices up statewide. The median price of a single-family home increased 3.7 percent to $340,000 in October compared to $327,750 in October 2015. Through October home prices have increased 1.7 percent statewide to $346,000. October was the 57th consecutive month that single-family home inventory declined, according to the Massachusetts Association of Realtors.  

“Homes sales in the first half of 2016 were gangbusters,” Timothy Warren, CEO of The Warren Group, said. “So far in the second half of the year, sales have slowed a bit and even declined in two of the four months. It is still too early to tell if demand has waned or whether low inventory leaves prospective homebuyers with too few choices. With interest rates expected to rise before year-end, we may see a steady, but not booming market this winter.

Condominium sales also decreased in October. The number of condo units sold declined 2.8 percent to 1,886 compared to 1,940 units sold in October 2015. From January through October, condominium sales increased 7.7 percent to 20,001 from 18,564 units sold during the same 10-month period in 2015. 

The median condo price reached $315,000 in October, a 1.6 percent increase from $310,000 in October 2015. Through the first 10 months of this year, condo prices increased 4.7 percent with a median sale price of $330,000 compared with $315,000 during the same time frame last year.

Condominium inventory declined in October for the 11th time in 12 months.