Boston, September 1, 2025
News Summary
For the first time, the median price for single-family homes in Greater Boston has surpassed $1 million, reaching $1,003,250 in June. This marks a 2.4% increase from May and a notable rise of 4.5% from the previous year. Despite a tight inventory and fluctuating mortgage rates around 6.75%, the market shows resilience, with 11,727 sales recorded through July. While the market shows signs of cooling, particularly in competitive bidding, there continues to be strong demand for move-in-ready homes, especially in desirable coastal areas.
Boston — For the first time in history, the median price for a single-family home in Greater Boston exceeded $1 million, reaching $1,003,250 in June, according to a regional sales report covering 64 cities and towns. The June figure represents a 2.4% increase from May and a 4.5% rise from June of last year.
Top lines
The Greater Boston market reported 11,727 single-family home sales through July 31, up 3.3% from 11,352 sales over the same period last year. The year-to-date median sales price for single-family homes is $805,000, an increase of 4.3% from last year’s median of $772,024. Condominium pricing showed relative stability with a June median of $725,000, a decline of 3.3% from both May and the prior June.
Market dynamics and buyer behavior
Inventory remains tight across Greater Boston, but the market shows signs of cooling compared with the peak bidding-war environment seen in previous years. There are fewer multiple-offer situations overall, giving some buyers more room to evaluate properties. Higher mortgage interest rates are prompting buyers to be more selective and deliberate.
Current average mortgage rates are approximately 6.75% for a 30‑year fixed loan and about 5.88% for a 15‑year fixed loan. These rates are influencing buyer affordability and decision timelines, with many prospective buyers prioritizing properties that require little to no immediate renovation.
Where demand is concentrated
Demand remains strong for move-in-ready single-family homes and for new construction where available, especially in coastal communities where luxury homes under $10 million are drawing particular interest. Listings that are priced competitively and in good condition often attract multiple offers, while fixer-uppers and properties perceived as overpriced are seeing less activity and longer days on market.
Sellers’ responses and market balance
Some sellers have responded to changing conditions by reducing prices or withdrawing listings instead of pursuing extended negotiations while rates and buyer demand stabilize. Buyers have returned to negotiating contingencies and requesting repairs more frequently than during the height of frenzied bidding, indicating a move toward a more balanced marketplace.
Supply constraints and construction
New construction remains in high demand but is limited in supply. The broader Massachusetts housing stock is among the oldest in the United States, and efforts to add new housing face community resistance in some locations, which constrains overall inventory growth and contributes to ongoing price pressure.
Affordability and long-term attractiveness
Affordability concerns are growing, particularly for first-time homebuyers who must weigh high home prices against current mortgage rates. Despite affordability challenges, Massachusetts continues to attract buyers for its strong educational institutions and concentrated job opportunities in science, medicine, and technology sectors, supporting long-term demand.
Summer trends and outlook
The summer market displayed signs of pent-up demand: households that needed to move generally completed transactions, while other potential buyers delayed activity. That pattern could result in additional buyer activity later in the season. Overall, the market appears competitive but more stable, with transactions increasingly favoring well-priced, well-maintained properties.
Data coverage and sources
The sales report is based on data from the Greater Boston Association of Realtors and covers transactions across 64 cities and towns defined as Greater Boston. The report provides monthly and year-over-year comparisons for single-family homes and condominiums and tracks year-to-date sales totals.
Frequently Asked Questions
What caused the median price for single-family homes to surpass $1 million?
A combination of tight inventory, continued demand for move-in-ready homes and limited new construction pushed the regional median above $1 million. Strong buyer interest in certain neighborhoods, especially coastal areas and locations with strong job markets, contributed to the gain.
How much did prices change month-to-month and year-over-year?
The June median single-family home price rose to $1,003,250, up 2.4% from May and up 4.5% from June of last year. Year-to-date median sales through July are $805,000, an increase of 4.3% from the same period last year.
Are mortgage rates affecting buyer activity?
Yes. Average rates near 6.75% for 30‑year fixed loans and about 5.88% for 15‑year fixed loans have made buyers more selective, reduced the number of frantic bidding contests, and increased negotiation around contingencies and repairs.
How is the condominium market performing?
The condominium sector showed relative stability in June with a median price of $725,000, representing a 3.3% decline from both May and the prior June, indicating localized variation compared with single-family trends.
What should first-time buyers know?
First-time buyers face affordability challenges due to higher prices and mortgage rates. Prioritizing condition, location, and total monthly housing costs can help buyers find options that match budget constraints. Limited inventory suggests acting decisively when suitable properties are found.
Is new construction relieving supply pressures?
New construction is in demand but insufficient to meet regional needs. Community opposition to development in some areas and the region’s older housing stock limit the pace at which new units come online.
Quick reference: Greater Boston market snapshot
| Metric | Value | Change |
|---|---|---|
| June median single-family price | $1,003,250 | +2.4% from May; +4.5% year-over-year |
| Sales through July 31 (single-family) | 11,727 | +3.3% year-over-year |
| Year-to-date median (single-family) | $805,000 | +4.3% year-over-year |
| June median condominium price | $725,000 | -3.3% from May and prior June |
| Average 30-year fixed mortgage rate | ~6.75% | Higher rates affecting affordability |
| Average 15-year fixed mortgage rate | ~5.88% | Higher rates affecting buyer choices |
| Geographic coverage | 64 cities and towns | Greater Boston area |
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Additional Resources
- MetroWest Daily News: Buyers Willing to Wait for Right Home
- Boston.com: Median Price for Single-Family Homes Surpass $1 Million
- Boston Agent Magazine: Greater Boston Real Estate Data July 2025
- CBS News: Boston Median Home Price Hits $1 Million
- Norada Real Estate: Boston Real Estate Market
- Wikipedia: Real Estate
- Google Search: Boston Real Estate Market
- Google Scholar: Boston Real Estate
- Encyclopedia Britannica: Real Estate
- Google News: Boston Housing Market
Author: STAFF HERE BOSTON WRITER
BOSTON STAFF WRITER The BOSTON STAFF WRITER represents the experienced team at HEREBoston.com, your go-to source for actionable local news and information in Boston, Suffolk County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Boston Marathon, Head of the Charles Regatta, and Boston Harborfest. Our coverage extends to key organizations like the Greater Boston Chamber of Commerce and Associated Industries of Massachusetts, plus leading businesses in finance, biotech, and insurance that power the local economy such as Fidelity Investments, Biogen, and Liberty Mutual Insurance. As part of the broader HERE network, we provide comprehensive, credible insights into Massachusetts's dynamic landscape.
