Massachusetts homebuyers are getting hit with a frustrating combo to start 2026: fewer homes changing hands while prices keep climbing.
Through the first two months of the year, single-family home sales dropped from 4,779 in 2025 to 4,274 in 2026, a slide of more than 10.5%, even as the median single-family sale price rose to $595,000. Condo transactions are down so far this year too, leaving would-be buyers and sellers staring at a familiar picture of fewer deals but still-high price tags.
Those figures come from The Warren Group's February sales data, reported by the State House News Service and published on NBC Boston. In February alone, there were 1,969 homes sold across the state, an 8% drop from a year earlier. Through February, single-family sales totaled 4,274, down from 4,779 in 2025. On the condo side, sales through the first two months came in at 2,026 this year, down from 2,266 a year ago, and the year-to-date median condo price slipped to $505,000.
The Warren Group's associate publisher, Cassidy Norton, pointed to the interest-rate environment, tariff worries and a lack of inventory as key reasons behind the cooldown. "February usually has a reduced number of sales compared to other months, and last month was no exception," Norton said, as reported by NBC Boston.
Permits and Production
On the construction front, preliminary data show builders also hit the brakes. Massachusetts authorized 12,096 new private housing units by building permits in 2025, down 15.6% from 14,338 in 2024, and the U.S. Census Bureau reports that 580 units were authorized in January 2026, according to the U.S. Census Bureau. That pullback in permit activity raises questions about whether supply can be ramped up quickly enough to relieve price pressure in the coming years.
Policy and the 220,000-Unit Target
State policymakers are betting that the 2024 Affordable Homes Act will be the main engine to boost new housing, and analysts note that Massachusetts has set an ambitious target of roughly 220,000 additional units over the coming decade to close the shortage, according to Boston Indicators. Governor Maura Healey has touted progress to date, saying the administration has "started or built 100,000 homes," a statement reported by The Boston Globe.
Officials caution, however, that last year's laws and funding are just the opening act. To hit that 220,000-unit goal, permitting and actual construction will need to pick up substantially from where they are now.
What This Means for Buyers and Sellers
On the ground, the dynamic is straightforward, if not exactly comforting. Fewer listings and stubborn prices mean buyers are still facing limited choices, while sellers who do bring properties to market often see strong bids. Bargain hunters are not having a great time.
Industry watchers say the spring selling season will be the real test. If listings increase and mortgage rates stabilize, sales volume could bounce back. If that does not happen, pressure is likely to build on policymakers to speed up permitting and sweeten incentives meant to spur construction and add more homes to the market.
