Massachusetts sees "staggering" drop in home sales
BOSTON - Home sales were way down in Massachusetts in 2023, according to numbers shared by real estate data provider The Warren Group on Tuesday.
There were 40,828 single-family home sales in the state last year, down from 52,639 in 2022. That's a 22.4% drop and the lowest number of sales since 2011.
There were just 3,150 single-family home sales in Massachusetts last month, the fewest for December since 2008. Condo sales were also down 18.7% for the year, with fewer than 20,000 sold in the state.
Warren Group spokeswoman Cassidy Norton called the decline "staggering."
"As demand outpaces supply, home prices continue to climb, making it increasingly difficult for many to enter the housing market," she said.
Why are home sales down in Massachusetts?
The Warren Group says "limited inventory and record-high prices" are the driving factors behind the slump.
The median price of a single-family home in Massachusetts was $550,000 in 2022 and rose to $570,000 in 2023. In the Greater Boston area, the median price of a home went up from $695,000 to $715,000.
A recent study from real estate company RedFin found that homebuyers in the Boston metro area need to have an annual income of more than $194,000 to afford a median-priced home. Around Worcester, the necessary salary is almost $119,000.
Last fall, Gov. Maura Healey introduced a $4 billion bill to create tens of thousands of new houses and make homes more affordable. A public hearing for the proposal is scheduled for Thursday.