Housing market collapse
High interest rates, low inventory culprits
Massachusetts home sales dropped to a low for the month of September not seen since the Great Recession, according to a report from real estate data tracker The Warren Group.
“Low inventory, record high prices, and rising interest rates have made it progressively more difficult for buyers to purchase homes — regardless of where they’re looking,” said Cassidy Norton, Warren Group Associate Publisher and Media Relations Director.
The number of singlefamily homes sold in the state in September was only 3,608, yesterday’s Warren Group report detailed, an over 25% drop compared to last September. The total number of single-family homes sold so far reached 30,665, trailing the same nine-month period in 2022 by over 10,000.
This comes as housing inventory in the state remains remarkably low, and mortgage rates have surged to a 23-year high, according to data from Freddie Mac released in September.
At the same time the report said the median single-family home price remained at a high $565,000, a 2.7% rise from 2022.
This comes after Massachusetts housing prices hit record highs for the months of July and August, clearing $600,000 median single-family home prices both months, according to Warren Group data.
The single-family home sales decline in the Greater Boston region alone outpaced the state, falling over 30% compared to September 2022 to 1,616.
The price surge for the region also overshot the state, rising 3.3% to an over $705,000 median single-family home sale price.
Data from the Massachusetts Association of Realtors, also released Monday, showed similar trends. The group recorded an even higher rise in singlefamily home prices, a spike of 5.3% over the September 2022 to hit $600,000.
New listings declined again, MAR stated, falling 13.1% for single-family homes in the state.
Despite the trends, 2023 president of MAR and realtor David McCarthy argued, it’s still a “good time for buyers and sellers alike to be active.”
“In several areas across the state, we’re seeing an increase in home inspections and subsequent renegotiations, indicating buyers are bringing more negotiating power to the table,” McCarthy said.