Massachusetts’ real estate market saw a mix of rising prices and shrinking inventory in November 2024, painting a complex picture for buyers and sellers alike. Data from The Warren Group and the Massachusetts Association of Realtors (MAR) highlights trends that could shape the market heading into 2025.
Home Prices Continue to Rise Modestly
In November, the median sale price for single-family homes in Massachusetts reached $600,000, marking a 3.4% increase compared to November 2023. Similarly, the median sale price for condominiums climbed 2.4% year-over-year to $511,955. While these price increases suggest sustained demand, they also highlight a slower pace of growth compared to prior years.
Despite these price hikes, sales volumes showed only slight increases:
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Single-family homes: 3,545 sold (+2.7% year-over-year)
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Condominiums: 1,449 sold (-2.6% year-over-year)
Inventory Challenges Persist
The number of homes for sale continued to decline in November, exacerbating Massachusetts’ ongoing inventory challenges:
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Single-family home listings fell 11.6% year-over-year to 5,476.
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Condominium listings dropped 9.6% year-over-year to 2,820.
MAR also reported that new listings are down significantly:
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2,668 new single-family homes hit the market (-12.5% year-over-year).
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1,135 new condominiums were listed (-11.6% year-over-year).
This shortage of new listings reflects a cautious approach from sellers, many of whom may be waiting for a more favorable market environment.
Buyer Caution Amid Economic Uncertainty
Several factors have contributed to a slowdown in buyer activity:
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Mortgage Rates: A modest rise in rates since October has caused some buyers to delay their purchases.
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Seasonal Slowdown: The holiday season and the upcoming presidential election have added to market hesitancy.
According to Jared Wilk, President of the Greater Boston Association of Realtors, “Buyer demand slowed over the past two months; however, as the impending presidential election, approaching holiday season, and modest rise in mortgage rates since October caused many to become more cautious and put off their homebuying decision until next year.”
What to Expect in 2025
Market analysts are keeping a close eye on the Federal Reserve’s monetary policy. If the Fed continues to lower its benchmark interest rate, mortgage rates could follow, potentially spurring increased market activity. However, central bankers have recently signaled caution, with new economic data suggesting that rates may stay relatively high.
Cassidy Norton, Associate Publisher at The Warren Group, noted, “The recent data suggests that mortgage rates are likely to remain relatively high, perpetuating the issue of potential sellers with lower interest rates reluctant to enter the market, contributing to the state’s supply issue.”
Key Takeaways for Buyers and Sellers
For buyers, inventory levels this fall are healthier than last year, offering a broader selection of homes. However, elevated interest rates continue to limit affordability for many.
For sellers, demand still exceeds supply at most price points, keeping upward pressure on prices. If mortgage rates begin to drop in 2025, the market could see a resurgence of activity.
Explore Cape Cod’s Housing Market
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Stay tuned for more updates as we continue to track Massachusetts’ housing market into 2025.
