Massachusetts Home Prices Up in March, Q1 2024

The median price of a single-family home in Massachusetts rose in March and during the first quarter of 2024, while inventory and sales declined, according to data compiled by the Massachusetts Association of Realtors (MAR).

The median house price rose nearly 9 percent in March to $609,900 from $560,000 in March 2023, on 2,421 sales statewide. Sales fell 6 percent in March. Through the first quarter of 2024, the median price stood at $585,000, just over 9 percent from the first three months of 2023. Buyers bought 6,601 houses in Q1, about 2 percent fewer than during the same period last year.

Single-family real estate inventory decreased 29 percent in March to 3,650 homes for sale across the Commonwealth.

At the end of March, home buyers had about one month's supply of inventory. About five to six months of inventory is considered a balanced market for home buyers.

MAR reported that the cost of Massachusetts condominiums in March wasn't too far behind that of single-family properties. The median condo price in March was $555,000 (up 8 percent) and $529,900 (up 6 percent) from January through March.

Condo sales decreased nearly 11 percent in March to 1,222 compared to 1,367 in March 2023, and 10 percent in the first quarter to 3,008 from 3,350 during 2023's first three months.

Fewer options resulted in fewer sales. Condominium inventory fell 21 percent in March to 2,303 from 2,904 available units in March 2023. At the end of March, there were about six weeks of condo inventory. 

Mortgage Interest Rates Move Higher

For home buyers who stood on the sidelines waiting for interest rates in the 6.375-percent range earlier this year to drop further, the last couple of months haven't gone as planned. Freddie Mac reported that the 30-year, fixed-rate mortgage loan rose nearly a quarter percent to 7.10 percent for the week ending April 18, 2024, from 6.88 percent the prior week.

"The 30-year fixed-rate mortgage surpassed 7 percent for the first time this year," said Sam Khater, Freddie Mac's Chief Economist. "As rates trend higher, potential homebuyers are deciding whether to buy before rates rise even more or hold off in hopes of decreases later in the year. Last week, purchase applications rose modestly, but it remains unclear how many homebuyers can withstand increasing rates in the future."

Does waiting for lower interest rates make sense? It depends. Waiting doesn't make sense if you can afford to buy at the current interest rates. If you buy now and rates increase, you will be glad you locked in at a lower rate. If interest rates decline, you can refinance. The decision-making process starts with talking to an experienced loan officer who will patiently lay out your options.