Despite stubbornly high interest rates and continued price growth, Massachusetts single-family home sales increased slightly in 2024, according to an analysis of sales data by The Warren Group.
The slight dip in rates to below 7 percent resulted in a slight uptick in purchase mortgage applications, the Mortgage Bankers Association (MBA) reported on January 22, 2025.
"Mortgage rates remained near 7 percent, a key psychological level, which likely continues to slow the pace of activity for both refinances and purchases," said Mike Fratantoni, MBA's senior vice president and chief economist. Fratantoni believes mortgage interest rates will remain at these levels until there is more certainty about the new administration's economic policy.
The Warren Group, a real estate data, analytics, and information company, reported on January 21, 2025, that the median price of a single-family home in Massachusetts reached an all-time high of $615,000 in 2024. The price grew 8 percent compared to $570,000 in 2023.
December 2024 saw median house prices jump 11 percent to $600,000 from $540,000 in December 2023. December's $600,000 median price was a new record for the month.
Massachusetts sales grew 3 percent in 2024 to 42,019 from 40,828 in 2023; however, the increase in sales comes after a more than 20 percent plunge in 2023, a 12-year low, according to The Warren Group. There were 52,639 sales in 2022. Home buyers bought 62,335 houses in 2021, almost 33 percent more than in 2024.
Single-family home sales increased 16 percent in December 2024 to 3,657 compared to 3,150 in December 2023 but were down from 2022's 3,838. Home buyers purchased 5,622 houses in 2022 and 6,469 in 2021.
Home buyers experienced little relief in the condominium market, with the median condo price increasing 5 percent in 2024 to $535,000, an all-time high, from $510,000. In December 2024, condo prices also rose 5 percent to $521,750, a new high for December.
While condo sales rose nearly 11 percent to 1,492 in December, the number of units sold in 2024 dipped 2 percent to 18,783 from 19,199 in 2023. Home buyers scooped up 23,616 condominiums in 2022 and 28,530 in 2021. Condo sales in 2024 were 34 percent less than in 2021.
The Warren Group also tracked real estate sales and median prices for Greater Boston's 139 municipalities within Interstate 495.
Single-family homes, more expensive than statewide, increased by 6 percent in 2024 to $760,000. Sales rose 4 percent percent to 20,383 from 19,642 in 2023.
Greater Boston median condo prices rose 3 percent to $620,000 in 2024, up from $599,900 in 2023. Condominium sales fell 2 percent to 13,580 compared to 13,866 in 2023.