Massachusetts home prices barreled through a new record for the month of July, handily clearing a whopping $600,000 for the median single-family home, according to data released by the Warren Group and Massachusetts Association of Realtors.
“Once again, median single-family home prices continued to set records across Massachusetts, despite mortgage interest rates that are nearly double what they were this time last year,” said Cassidy Norton, the Warren Group Media Relations Director, in a statement accompanying the data. “Demand is obviously still strong among prospective buyers, but inventory can’t keep up.”
Single-family homes sales in Massachusetts decreased 23.1% from July 2022 the Warren Group reported, falling to 4,085. As inventory lagged, the group said, the median price for single family home continued to rise year-over-year to $610,000 — a new all-time record for the month of July.
Massachusetts Association of Realtors (MAR) likewise reported a 23.6% decline and a 4.3% increase to a record $640,000 median single-family price for the month of July in their release Monday.
Monthly closed sales dipped in July for the first time in four months, reversing a slightly positive trend at the start of the summer. Following the June uptick, the MAR president forecasted the second half of the year would remain similar to the first — with steady trends or slight upticks — due to stubbornly low inventory and high prices.
July also saw the second monthly decline in new listings, MAR reported, with year-over-year new single-family-home listings down 26.7%.
High interest rates continue to be a large factor in the subdued market, said MAR Treasurer Jim Major.
“One of the biggest drivers there is the rise of interest rates, believe it or not,” said Major. “And the reason for that is, you have a lot of people that purchased their homes within the past 10 years who have a much lower interest rate currently, and they don’t want to or are a little timid, to buy their next home with a higher rate.”
Trends in the greater Boston area followed the state, according to the Warren Group, with prices spiking 4.7% on a year-over-year basis to $775,000. Boston area sales also fell for the month of July 23.2% year-over-year, reaching 2,063 sold.
Once the interest rates start to come down, Major added, he’s hopeful it will “help us out in a lot of different ways” and bring more buyers and sellers into the market.
“When I’m working with buyers now, I counsel them to keep their eye on the ball and to stay in it and not get discouraged,” said Major.