Massachusetts home prices set new records in 2021: Homebuyers Homeownership Massachusetts

 As buyer demand continued to outpace inventory levels, prices of single-family homes and condominiums in Massachusetts hit new records in 2021, according to a new Warren Group report. The Warren Group’s Massachusetts Sales Report for December 2021 found single-family home sales fell 13.4 percent to 5,588 from 6,453 a year ago. Compared to December 2019, however, home sales were up 12.1 percent. The median sale price marked another all time high for December, at $500,000, up from $457,000 a year earlier and up 25.4 percent from December 2019’s $398,750 price.

 December was the ninth consecutive month the median single-family home price was above $500,000. There were 62,195 single-family home sales in December, a 0.8% increase from 2020. In 2021, the median sale price rose to $510,000, up 14.1% from 2020, which according to the Warren Group was the first time the median year-end price exceeded $500,000. Warren Group CEO Tim Warren said last year was a wild ride for Massachusetts and “not necessarily one I would want to be on if I were in the market for a new home.”

 “The year-end median sale price of $510,000 is a strong indicator that the lack of inventory is increasing competition, pushing prices up and stretching buyers’ budgets thin,” Warren said in a press release. “Higher mortgage interest rates may moderate the increases in home prices, but they will keep monthly mortgage payments sky high. Demand remains high as buyers eagerly await the spring market for a wave of new homes coming to market. But many current homeowners are opting to stay put, which is compounding the inventory issue.” Condominium sales also declined in December, falling 15 percent to 2,176, compared to 2,561 a year earlier and up 3.1 percent from December 2019. Last month, the median condominium sale price rose 7 percent to $438,500, a new high for the month.

 The median condo price was up 15.5 percent from December 2019. Warren said the condo market was strong in 2021, as COVID anxieties continued to wane and demand continued to grow. “Even when comparing activity on a two-year basis, it’s clear that there is strong demand for condos, which are typically concentrated around urban centers, close to public transportation and jobs,” he said. “The median full-year sale price of $454,000 marked an all time high for condos, and as inventory in the single family market continues to dwindle, this could yield even more competition in the condo market in 2022 as buyers look at condos as an alternative for single family homes.”
There were 28,488 condo sales in 2021, a 17.7 percent increase from 2020. Last year’s median condo sale price was $454,000, up 9.4 percent from 2020’s $415,000.

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