Real Estate

Home prices break records in Mass. — again

Sales continued their descent, with November recording the fewest single-family properties on the market since 2011.

The Boston skyline at sunrise, viewed from Fan Pier Park in the Seaport District. In Boston, the median sales price for a condo was up 37.6%, according the The Warren Group. Craig F. Walker/Globe Staff

By Eileen Woods

December 19, 2023

The median sales prices for single-family homes and condos in Massachusetts broke records in November — news that should come as no surprise as this seller’s market steamrolls on.

People paid a median sales price of $579,900, or 8.4% more, last month for a single-family home than they did in November 2022, according to the monthly analysis The Warren Group released this morning. In the condo market, the median sales price jumped 5.3% year over year to $500,000.

Condos

Cassidy Norton, associate publisher and media relations director for the data analytics firm, said the median condo price hasn’t dropped under half a million for three months, but there is hope.

“Condo activity was nearly lockstep with single-family trends in November,” Norton said. “Condo sales were down by more than 10 percent on a year-over-year basis, while median sale prices reached new all-time highs for the month. However, when looking at condo trends over the last three months, there may be a glimmer of hope for prospective buyers, as the median sale price appears
to have plateaued.”

In South Boston, the median sales price for a condominium was $880,000 in November, a whopping 15% increase over the same period last year, while sales were down 18.5%. Overall, sales are down 35.5% this year, while the median sales price is up less than a percentage point.

In Somerville, the median condo sales price was also up by double digits year over year (11.2%) to $767,450. So far this year, sales have risen 22.2% and the median sales price is up 4.9%.

Single-family homes

In the single-family market, the median sale price climbed 8.4% to $579,900, while the number of transactions slipped 10.6%. With one month left to go in the year, sales are down about 23%, and the median home price has risen 4%.

“I don’t expect the pressure building behind this pent-up demand to be relieved this year; I think we can expect to see more of the same in the coming months due to elevated interest rates,” Norton said. “However, the Federal Reserve has indicated it intends to reduce interest rates in 2024, which may help relieve some of that pressure.”

In Needham, sales of single-family homes more than doubled year over year (110%) in November, and the median sales price climbed 8.4% to $1,528,000. But sales are down 22.9% this year overall, as is the median sales price (-4.2%).

In Quincy, considered a more affordable, transit-friendly alternative to Boston, sales were up 12.5% year over year, and the median sales price rose 8.4% to $704,900. Sales are down about 18% so far this year, but the median sales price year to date shows no change.