WORCESTER, Mass. - Home sales in Massachusetts are at a 12-year low, according to a recent report from The Warren Group.
What You Need To Know
- Massachusetts single-family home sales fell to a 12-year low in 2023, with low inventory and high prices continuing to have an impact, according to a new report from The Warren Group
- Realtor Association of Central Mass. president Cherie Benoit said the market is challenging for first-time homebuyers and people looking to "right-size" with high interest rates and a lack of inventory
- For December 2023, the median single-family sale price increased 5.9% on a year-over-year basis to $540,000 - a new all-time high for the month
- Benoit said funding and legislation for things like accessory dwelling units can go a long way in helping the housing market
“What we're still seeing is multiple offers in a lot of areas, houses selling for more than list price and just a complete lack of inventory," said Realtor Association of Central Mass. president Cherie Benoit. "We need more inventory.”
While demand continues to outweigh supply, Benoit said it’s good to still have people who are eager to buy homes, but there’s a lot of buyer frustration with a lack of homes for sale combined with interest rates above 6%.
“I think one of the biggest issues is we have a lot of people who they might be at a stage in their life, whether they're starting out or getting ready to retire, where they're ready to right-size, whether it's into a smaller home or retirement community or similar," Benoit said. "And some of those folks just are not in a position where they're ready to give up their wonderful 3% interest rate.”
Despite home sales in 2023 being at a statewide 12-year low, with a 23% decline in Worcester sales, according to The Warren Group, a recent report from Realtor.com lists Springfield and Worcester among the top ten metropolitan areas in the nation where a growth in homes sales is expected this year.
“We're always hoping for that for sure," Benoit said. "Expecting, you know, I don't think anyone can predict the markets, unfortunately, but I think especially if rates continue to drop a little bit, that will help people and make people feel more comfortable; that all remains to be seen, of course.”
Benoit said for anyone thinking about buying or on the fence about selling, her advice is to talk to a local professional about what your options are.
When it comes to Worcester, Benoit believes another big part is how desirable the city is becoming. We also spoke to City Manager Eric Batista about what he believes is drawing people to Worcester.
“I think it's a combination of things," Batista said. "One is we are a very livable community where prices are still significantly much lower than Boston. So, people tend to see a community like ours that has you know, it has the arts, it has a great transportation system, it has a sports scene. You know, it has a theater here. It has nine, or eight, colleges and universities. It has the makeup of being a great city, a very great community for people to live in, to people to be excited about it, to integrate themselves in.”
While both demand and prices for homes rise in Worcester, Batista said the city has a long-term plan in terms of housing capabilities and supporting every resident.