The real estate market is constantly changing, as are predictions for what we can expect in the future. Last year, for instance, interest rates were predicted to increase during 2019. Although this was certainly true at the beginning of the year, the Fed ended up reducing rates twice later in the year. Although we can never truly and accurately predict the future, we still can make some educated guesses based on where the market has already been. This Massachusetts real estate market update may help you better understand current market conditions.
Single Family Home Sales
So far this year, 41,490 single family homes have sold in Massachusetts. This is slightly lower than number sold during the same timeframe last year. The average selling price is $519,782, a 3% increase from last year’s average of $504,090. Homes are being listed for a much higher price at $613,501 on average (compared to just $531,256 last year). The amount of time is takes to receive an offer has remained steady.
A surprising fact about Massachusetts is that condo market is just as strong as that of single families. For example, the average selling price of condos this year is $529,489. This is a 5% increase from $503,620 last year. On average, condos are selling for 1% above the listed price. Similar to single family homes, there is less inventory this year. 16,543 condos have sold year-to-date, compared to 16,939 last year during the same timeframe.
Multi-family Property Sales
Coincidentally, the same exact number of multi-family homes (5,651) have sold this year compared to last. Average sale prices increased from $528,232 to $546,990 (roughly a 3.5% increase). As with the other property types above, the days on market remained steady. Most multi’s are selling for list price or fairly close to list price.
What We Can Learn from this Massachusetts Real Estate Market Update
In summary, the Massachusetts real estate market has improved for all property types. This is probably due to a lack of inventory and to reduced interest rates. How likely is this trend to continue? It’s difficult to tell. As long as interest rates remain low, home ownership will continue to be very appealing and more cost effective than renting, for most.