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Massachusetts home prices rise and inventory falls

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Massachusetts home prices rise and inventory falls

While the U.S. housing market has seen home prices rise an average of 38.69% over the past five years, Massachusetts homes had the smallest increase since 2021.

Analyzing data from Zillow, the New Jersey Real Estate Network looked at historical average home prices in states across the East Coast to see which had the highest increase over the past three years.

The report found Massachusetts property taxes only increased 13.37% since 2021, ranking the Bay State last on the list. 

A spokesperson for New Jersey Real Estate Network said growth in the housing market slowed during the pandemic even though there was an increase in those moving to suburban or rural areas, and more companies embraced allowing employees to work from home. 

More rapid growth was seen in 2021 and continues into 2023.The average U.S. home price is $339,048, an increase of 3.3% from last year, according to the report. 

Massachusetts had the lowest increase in home prices: the average home price in April was $568,244, a 13.37% increase from April 2021’s average of $501,215.81  

Massachusetts wasn’t the only New England state in the rankings.

Maine had the fifth-highest increase, as house prices there increased 24.60% since 2021. The average price of a home in Maine in April was $360,951, compared to $289,688 a year ago.

New Hampshire took the No. 6 spot, as the average home price there reached $435,383 in April, increasing 22.04% from last year’s $356,753.  

Florida had the highest increase in the U.S. The Sunshine State saw the average price of a home grow 35.16% from 2021 to $385,157.

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Median home prices rose last month as new listings and closed sales fell, according to the Massachusetts Association of REALTORS® November housing report

The report found an increase in housing costs, along with economic factors, led to a decrease in overall inventory, a trend MAR says has been steadily increasing over the past several months.

And Massachusetts is in the same boat as the rest of the country as these increasing costs are causing a market cooldown. 

Housing Inventory still a Problem

“Inventory continues to be the largest problem facing the Massachusetts housing market,” said Dawn Ruffini, 2022 MAR president and REALTOR® at RE/MAX Connections. “As residents search for relief from inflation, it seems sellers and buyers are willing to cross their fingers and hope for a better climate in 2023.”

Median Home Prices Still Rising

Last month, the median price for a single-family home rose 0.72% year over year to $552,950, while new, single-family home listings decreased by 25.7%.

Condominium Sale Listings Fell

Meanwhile, condominium prices rose just a bit, by 0.05% in November, to $485,250, while condo listings fell 25.5%.

Single-family Closed Sales Fell

The report also found that single-family closed sales fell 7.13% compared to October, while closed condo sales dropped 5.78%.

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