Massachusetts housing market hit a rough patch in 2023 with single-family home sales dropping to a 12-year low, thanks to a combo of scarce inventory and sky-high prices, The Warren Group reported. The market witnessed a paltry 3,150 single-family home transactions in December, nosediving 18.4 percent from the previous December, the lowest for the month since the doom and gloom of 2008. All the while, the median sale price for these homes wasn't shy to flaunt a new record of $540,000, up by 5.9 percent from the year before.
"With 40,828 single-family home sales in 2023, we've witnessed a staggering 22.4 percent decline from the previous year, marking the lowest number of sales since 2011," Cassidy Norton, Associate Publisher and Media Relations Director of The Warren Group, lamented on the year's performance. Crawling up along with the decline, the year-end median sale price for single-family homes rose 3.6 percent to a record $570,000. High interest rates coupled with the limited houses on the market poured fuel on the price hike fire, leaving many potential buyers in the dust.
In the condominium sector, the story wasn't much different. December saw 1,350 condo sales, which is a 13.8 percent dip from the year before and notably the gloomiest December since 2011. But as sales sagged, the median price still managed to climb a steep 11.6 percent to a December peak of $496,744.
"The Massachusetts condo market followed similar trends to single-family homes in 2023," Norton pointed out the echo in the condo market. She noted that the 19,199 condo transactions last year represent an 18.7 percent fall from 2022 – the fewest since 2012. But it wasn't all downhill; the median sale price decided to buck the trend, cresting at an all-time high of $510,000, a 4.4 percent surge from the year before. These numbers send a clear signal that despite fewer sales, the condo market still pulls considerable weight with buyers prepared to pay for that slice of homeowner convenience and lifestyle.
Greater Boston, enfolded by a region of 139 towns, felt the chill as well. December 2023 saw single-family home sales in the area take a plunge by 21.8 percent compared to the previous December, landing at 1,459 transactions. Not missing a beat, the median sale price in Greater Boston kept on its upward march, appreciating 10.2 percent to $699,900. The whole year painted a similar picture, with 19,560 single-family homes changing hands, a 23.8 percent shrinkage from 2022's numbers. Yet, the median price tiptoed upwards to $715,000, nudging up 2.9 percent.
Condensing the picture to condo sales in Greater Boston, December 2023 concluded with 965 sales – a 13.8 percent fall from the previous December. Median prices, however, were undeterred, scoring an 8.7 percent year-over-year gain to $580,000. The overall year continued the same rhythm, winding down with 13,874 condo sales, yet median prices maintained their upward stride, picking up by 3.3 percent to hover at $599,000 by year-end.
