The Massachusetts housing market in February 2025 presents a complex landscape characterized by varying trends across different metrics. The Median Sales Price has decreased by 1.6% year-over-year, settling at $613,900. This decline suggests a slight cooling in the market, potentially offering opportunities for buyers seeking more favorable pricing.

Conversely, the Median List Price has increased by 8.5% year-over-year, reaching $712,400. This rise indicates that sellers are optimistic about the market's potential, possibly driven by the state's economic conditions or demand in specific areas. The median Price Per Square Foot has also seen a notable increase of 5.9%, now at $399, reflecting a continued appreciation in property values despite the overall sales price decline.

In terms of sales activity, the number of Homes Sold has decreased by 1.3% year-over-year, with 3,159 transactions completed. Pending Sales have experienced a more significant drop of 11.8%, totaling 4,072. This decline in Pending Sales could signal a slowdown in buyer activity or challenges in closing transactions. New Listings have also decreased by 9.1%, with 4,501 properties entering the market, suggesting a tightening in supply.

Inventory levels have increased by 2.1% year-over-year, reaching 7,357 homes. This rise in inventory, coupled with a stable Months of Supply at 2.3 months, indicates a balanced market where supply and demand are relatively aligned. The Median Days on Market have increased by 4.0%, now averaging 32 days, which may reflect a more deliberate pace in buyer decision-making.

The average sale to list ratio remains robust at 100.2%, with a slight year-over-year decrease of 0.1%. This ratio suggests that homes are generally selling at or near their list prices. However, the percentage of Homes Sold above list price has decreased by 1.8%, now at 42.7%, indicating a potential shift in negotiating power towards buyers.

Price Drops have increased by 2.1%, affecting 16.6% of listings, which may be a response to the changing market dynamics and a need for sellers to adjust expectations. Additionally, the percentage of homes going off the market within two weeks has decreased by 3.1%, now at 55.1%, suggesting a slower pace in market turnover.

Overall, the Massachusetts housing market in February 2025 reflects a mix of rising list prices and declining sales prices, with a stable inventory and a slight shift towards a more balanced market. Buyers and sellers alike should remain vigilant and adaptable to the evolving conditions.