Forget about Massachusetts home sales and prices. The real story is still the need for inventory.
The Massachusetts Association of Realtors reported on May 15, 2023, that the median sale price of a single-family home last month fell by $2,000 to $588,000 statewide compared to April 2022. April single-family home sales dropped 24 percent year over year to 2,604 from 3,434. Condominium sales fell 33 percent in April to just 1,271 units closed, while median prices fell 2 percent to $530,000.
The decline in sales has less to do with home buyer demand and more with the number of homes available. Single-family homes available plummeted by 26 percent in April to 4,388, translating into about five weeks of supply. About six months of inventory is considered a balanced market between home buyers and sellers. There were less than two months of condominium supply at the end of April, and units available fell 20 percent to 2,554.
The following are five cities and towns in the Greater Boston area that had less than one month of single-family inventory at the end of April.
- Canton, Massachusetts: Located about 20 miles southwest of downtown Boston in Norfolk County, Canton had about three weeks of inventory at the end of April or just nine houses for sale. Sales were flat at 11, and the median house price rose $2,500 to $812,500 year over year. There were nine condominiums on the market, about one month of available units.
- North Attleborough, Massachusetts: There were about three weeks of inventory in North Attleborough in April. Located in Bristol County, about 45 miles south of Boston on the Rhode Island border, the town had 15 single-family homes available to prospective home buyers. Sales fell from 18 in April 2022 to 10 last month, with a median sale price dropping 22 percent to $512,500. There was only one condominium for sale at the end of April, less than one week of supply.
- Revere, Massachusetts: Bordering East Boston from the north and about six miles from downtown Boston in Suffolk County, Revere had less than two weeks of single-family supply, with only four houses for sale at the end of April. Revere has several MBTA Blue Line stops. Sales fell 58 percent to just eight. The median house price rose 5 percent to $643,250. Eight condos were for sale, with less than a month of inventory.
- Tewksbury, Massachusetts: Tewksbury, located in Middlesex County and about 25 miles northwest of downtown Boston, had two weeks of single-family inventory at the end of last month. There were nine available homes. House sales declined 38 percent to 13, and prices rose about 2 percent to $635,000. There were 29 available condominiums or about five weeks of supply.
- Shrewsbury, Massachusetts: Located about 40 miles west of Boston in Worcester County, Shrewsbury had about three weeks of single-family supply and 18 houses for sale. On a year-over-year basis, sales fell 26 percent in April from 23 to 17. The median house price also declined almost 13 percent to $560,000. There were six condos on the market, about three weeks of supply.
While the number of houses and condominiums has increased slightly since the start of the year in some communities, demand continues to outstrip supply this spring significantly throughout Greater Boston.