Massachusetts Housing Market Analysis - July 2024
The Massachusetts housing market in July 2024 presents a nuanced picture, characterized by a blend of declining prices and increasing sales activity. This analysis delves into the various metrics that define the current state of the market, offering insights into the trends and shifts observed over the past year.
Price Trends
The median sales price for homes in Massachusetts stands at $668,100, reflecting a year-over-year (YoY) decrease of 2.1%. This decline in sales price is mirrored by the median list price, which is currently $640,400, down by 3.7% YoY. Despite these reductions, the median price per square foot has risen to $392, marking a 5.3% increase YoY. Similarly, the median list price per square foot has also seen a rise, now at $386, up by 5.9% YoY. These figures suggest that while overall home prices have dipped, the value per square foot has appreciated, indicating a potential shift in buyer preferences towards smaller, more efficiently priced properties.
Sales Activity
Sales activity in Massachusetts has shown robust growth. The number of homes sold in July 2024 reached 6,474, an 8.7% increase YoY. Pending sales also saw a significant rise, with 6,231 homes under contract, up by 7.9% YoY. New listings have kept pace with this demand, totaling 6,482, which is a 7.0% increase YoY. This uptick in sales and listings indicates a dynamic market with active buyer and seller participation.
Inventory and Supply
The inventory of homes available for sale has expanded considerably, with 10,172 homes on the market, a 17.9% increase YoY. Correspondingly, the months of supply, which measures the time it would take to sell all current listings at the current sales pace, has risen to 1.60 months, up by 20.0% YoY. This increase in inventory and supply suggests that the market is becoming more balanced, providing buyers with more options and potentially easing the competitive pressures seen in previous periods.
Market Dynamics
The median days on market for homes in Massachusetts is currently 20 days, reflecting a slight increase of 2.0% YoY. The average sale to list ratio, which compares the final sale price to the list price, is 102.4%, down by 0.6% YoY. This slight decrease indicates that while homes are still selling above their list prices, the premium buyers are willing to pay has diminished slightly.
The percentage of homes sold above list price stands at 58.7%, a decrease of 2.2% YoY. Additionally, the proportion of price drops has increased to 26.8%, up by 5.2% YoY. These trends suggest that sellers may be adjusting their expectations and pricing strategies in response to changing market conditions.
Off-Market Trends
The percentage of homes going off the market within two weeks is 54.5%, down by 3.9% YoY. This decline indicates that homes are taking slightly longer to sell compared to the previous year, which could be attributed to the increased inventory and more balanced market conditions.
Conclusion
In summary, the Massachusetts housing market in July 2024 is characterized by a decrease in overall home prices but an increase in price per square foot, suggesting a shift in buyer preferences. Sales activity remains strong, with significant increases in homes sold, pending sales, and new listings. The expanded inventory and months of supply indicate a more balanced market, providing buyers with more options. While homes are still selling above list prices, the premium has slightly decreased, and homes are taking a bit longer to sell. These trends collectively paint a picture of a market in transition, with evolving dynamics that both buyers and sellers need to navigate carefully.
