News Summary

Massachusetts is experiencing a rise in home prices and sales with the median sale price for single-family homes reaching over $666,000 in May 2025, a 4.7% year-over-year increase. Despite the high prices, sales increased by 2.4% compared to last year. Areas in western Massachusetts show more affordable prices. Legislative efforts aim to address the significant housing shortage expected to exceed 220,000 units, along with new regulations to protect homebuyers’ rights and promote housing accessibility.

Massachusetts Sees Increase in Home Prices and Sales Amid Ongoing Housing Shortage

Massachusetts has witnessed a rise in home prices and sales as the median sale price for single-family homes exceeded $666,000 in May, marking a 4.7% year-over-year increase. The Warren Group reported a modest 2.4% increase in single-family home sales, totaling 4,010 sales in May 2025 compared to the same month in 2024.

Market Trends and Data

The median price for single-family homes in Massachusetts reached $666,125 in May 2025, with prices usually peaking in June. This seasonal trend suggests that prospective buyers may find better deals later in the year. Year-to-date figures reported 14,358 single-family home sales in 2025, reflecting a 2.2% increase from the same period in 2024. The median price year-to-date has also seen an upward trend at $620,000, which indicates a 5.1% increase compared to last year.

Despite high prices, more affordable options can be found in the four western-most counties of Massachusetts. Hampshire County has a median price of $415,000, while Franklin County leads with $348,500. Hampden County and Berkshire County follow closely with median prices of $320,000 and $325,000, respectively. These areas signify a potential for buyers looking for lower entry points into the housing market.

Condo Market Insights

In the condominium market, 7,323 condo sales have been recorded in the first five months of 2025, which is a 1.2% increase from the previous year. The year-to-date median condo sale price has risen by 1.9% to $539,000. Efforts to increase the housing stock are ongoing, with inventory for single-family homes rising by 6.2% and condos by 13.1% year-over-year as of May 2025.

Legislative Efforts and Challenges

Massachusetts is facing a significant housing shortage, estimated to exceed 220,000 units by the end of the decade. This has raised concerns from state politicians regarding the impact of escalating housing costs on younger residents. In response to these issues, a new 2024 housing law aims to stimulate housing production to improve availability and affordability.

Additionally, Massachusetts has implemented a new regulation set to protect homebuyers from being pressured to waive home inspections. This regulation will go into effect for home sales closing after October 15, 2025, requiring sellers to provide written disclosure acknowledging a buyer’s right to request a home inspection. This move is part of the broader Affordable Homes Act, intended to boost housing accessibility.

Concerns have been voiced by real estate industry groups regarding the potential liability associated with the new regulation and the capacity to manage the anticipated increase in demand for home inspections. The state’s housing agenda is extensive, with significant resources directed towards new funding for residential projects and the development of thousands of new housing units in transit-accessible locations.

Sales Trends

Despite the rising median prices, closed sales for both single-family homes and condos saw slight declines, with single-family home sales decreasing by 0.2% and condos dropping by 2.4% compared to the previous year. New listings for both market segments have shown minor increases, with single-family homes up by 2.3% and condos by 2.9% in May 2025.

As Massachusetts continues to navigate its housing crisis, the combination of rising prices and legislative measures reflects the complexities of the current market landscape. Buyers and sellers alike will need to remain informed as the year progresses and housing developments unfold.

Deeper Dive: News & Info About This Topic

Author: HERE Boston

Tagged Massachusetts business news, Massachusetts economy, Massachusetts headlines, Massachusetts housing market, Massachusetts market trends, Massachusetts real estate

Massachusetts Home Prices and Sales Surge Amid Shortage