Massachusetts Dwelling Gross sales Fall in October 2022, Affordability an Problem

Massachusetts single-family dwelling gross sales plummeted in October year-over-year, the Massachusetts Affiliation of Realtors (MAR) reported not too long ago. 

Massachusetts homebuyers with their dogDwelling gross sales have dropped each month in 2022 on a year-over-year foundation, however October had essentially the most important decline at 22 %. 

Homebuyers bought 3,826 single-family properties in comparison with 4,904 in October 2021. In October 2020, the pandemic-fueled actual property market noticed 6,237 homes bought. 

By the primary 10 months of 2022, homebuyers bought 41,075 single-family properties, a 12 % lower from the 46,827 bought throughout the identical timeframe final yr. 


Single-family Dwelling Costs Rise


• The median home worth rose 5 % statewide to $547,000 in October from $520,000 in October 2021. 


• By October, home costs climbed 9 % to $579,000 in comparison with $530,000 throughout the identical 10-month interval final yr. 


• Homebuyers paid, on common, 99 % of the unique checklist worth in October in comparison with 102 % in October 2021. By October, homebuyers paid 103 % of the unique checklist worth on common.


Single-family Stock Stays Tight


• The variety of single-family properties on the market dropped 16 % in October, falling from 7,820 homes in October 2021 to six,562 final month. 


• The variety of months of provide was about six weeks in October, the identical as October 2021. Roughly six months of stock is taken into account a balanced market between homebuyers and residential sellers. 


• New listings in the marketplace fell 17 % to 4,359 from 5,261 in October 2021. 


Condominium Gross sales Plummet


• There have been lower than 1,500 condos bought in October, a 26 % decline yr over yr. 


• By October, the variety of models bought fell 18 %, the eleventh consecutive month of year-over-year declines in gross sales. 


Median Rental Value Jumps


• Regardless of the upper interest-rate-induced gross sales sump, scant stock resulted in a double-digit worth enhance statewide. The median rental worth rose 12 % in October to $484,500.


• From January by way of October, condominium costs rose 8 % to $508,000


• Homebuyers paid, on common, one hundred pc of the unique checklist worth in October and 102 % by way of October, indicating that whereas costs are holding, competitors has slowed. In Might, rental patrons paid 104 % of the unique checklist worth.  


Condominium Stock Falls Off a Cliff


• Rental stock nosedived 27 % in October to three,088 from 4,218 models on the market in October 2021. 


• The months of provide of condominiums dropped 15 % to lower than two months in October. 


• There have been 1,838 new listings in October, a 19 % decline yr over yr. 


Affordability Stays a Drawback


• The MAR “Housing Affordability Index” declined 33 % for single-family properties in October to 55. 


• Condominium affordability dropped 37 % to 62.


• The index measures housing affordability. The next quantity means better affordability. For instance, an index of 120 means the median family earnings is 120 % of what’s essential to qualify for the median-priced dwelling with prevailing rates of interest.


Potential homebuyers should keep in mind that all actual property is native, and never all native housing markets will enhance or lower in unison.   

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