Home Sales Hype: A Closer Look
Boston Mayoral Campaign to Focus on Housing | Leaving Massachusetts | News Nuggets
Don't Get Too Excited About the Increase in Home Sales
Despite the real estate industry cheering the modest increase in single-family home sales in Massachusetts and Greater Boston last year, the sales numbers are significantly lower than a couple of years ago.
Statewide house sales increased nearly 3 percent in 2024 compared to 2023, not much of an increase coming off a 22 percent drop from 2022 to 2023, according to statistics compiled by real estate data company The Warren Group.
There were 42,019 single-family home sales in the Bay State in 2024 compared to 40,828 in 2023, 52,639 in 2023, and 62,335 in 2021. Even in 2020 – the year a worldwide pandemic kept many people indoors for at least part of the year – home buyers purchased 61,845 houses, almost 20,000 more than in 2024. Compared to 2021, there were about 33 percent fewer single-family home sales in 2024.
Condominium sales dipped about 2 percent in 2024 after falling 19 percent from 2022 to 2023 and 17 percent from 2021 to 2022. Home buyers bought 18,783 condos in 2024, 19,199 in 2023, 23,606 in 2022, and 28,530 in 2021. The number of units sold in 2024 was 34 percent less than in 2021.
See a detailed real estate datasheet
Single-family home and condominium sales in Greater Boston followed a similar pattern, posting modest gains in 2024 after significant declines in 2023. The Warren Group defines Greater Boston as the 139 cities and towns within I-495.
Single-family home sales increased nearly 4 percent in 2024 to 20,383 from 19,642 in 2023. In 2022, Greater Boston home buyers purchased 25,664 houses. Home buyers bought almost 21 percent fewer houses in 2024 compared to 2022.
Condominium sales slid 2 percent in 2024 after dropping 18 percent from 2022 to 2023. Condo sales in 2024 (13,580) were 20 percent less than in 2022 (16,967).
Slow sales haven't stopped prices from increasing. The median price of a single-family house in 2024 in Massachusetts rose nearly 8 percent to $615,000 and 6 percent to $760,000 in Greater Boston.
Statewide, the median condo price reached $535,000, up 5 percent in 2024. Condominium prices rose about 3 percent to $620,000 in Greater Boston from $599,900 in 2023.
If January is any indication, sales might rebound in 2025. Statewide, single-family home sales rose about 9 percent compared to January 2024, while condominium sales jumped 19 percent. Median prices for houses ($585,000) and condos ($530,000) reached all-time highs for January.
In Greater Boston, single-family home sales rose nearly 11 percent, while condominium sales soared 21 percent from January 2024. House prices increased almost 9 percent to $750,000, and the median condo price dipped $5,000 to $620,000.
While the inventory picture is improving for home buyers, move-in-ready properties are still receiving multiple offers and selling for more than the listing price.
Boston Mayoral Campaign to Focus on Housing
Boston mayoral candidate Josh Kraft, son of New England Patriots owner Robert Kraft, plans to make housing a focal point of his campaign to unseat Boston Mayor Michelle Wu.
His campaign website states, "[He] will implement a multi-dimensional plan to turbo-charge housing production by providing incentives to get permitted housing built, give meaningful relief to renters, and provide support for first-time homebuyers."
Kraft blames Wu for a slowdown in housing production. "When it comes to housing production, Mayor Wu's administration has been inconsistent in its commitments and misleading in its portrayal of the facts."
Kraft claims that in the last "fourth" months of 2024, city officials advanced only 177 units, representing the fewest permits issued in the city over the past six years. He adds that over 26,000 units have been formally approved and are ready to be built; however, they are stalled and idle because irresponsible policymaking hinders development.
Massachusetts: Top State to Leave
There's a lot of talk about young professionals leaving Massachusetts due to high housing costs. A survey found that, yes indeed, many people are leaving Massachusetts, but not the people or for the reasons you might think.
United Van Lines named the Bay State one of the top states for people moving away in its 48th Annual National Movers Study, coming in fifth with outbound migration at 58 percent. The study showed the primary reasons driving people to leave were a job (25 percent), followed by family (24 percent), retirement (18 percent), and lifestyle (11 percent). Health and cost reasons were each responsible for about 4 percent of the moves.
The study found that the most significant percentage of people leaving Massachusetts were 65 and older (34 percent). Other age groups leading the migration out of Massachusetts were those 55 to 64 (23 percent) and those under 18 to 34 (19 percent).
Of those individuals who left Massachusetts, 21 percent were earning between $100,000 and $149,900, while 15 percent coming to Massachusetts were in that income range. The largest percentage (53 percent) leaving by income were individuals earning $150,000 or more; however, that income bracket also comprised the greatest rate of inbound migration (57 percent).
Massachusetts has been among the top outbound states for the past five years, according to the 2024 study. New Jersey, Illinois, New York, and California were the top four outbound states.
News Nuggets
Cambridge First to Eliminate Single-family Zoning: The Cambridge City Council Monday recently voted to eliminate single-family zoning, clearing the way for increased density as the state seeks to address its housing crunch. Cambridge is the first in Massachusetts to take the step that allows four-story residential buildings to as of right, WBUR reported February 11, 2025. Developers can build six stories if they designate 20 percent of the building's units as affordable. Before the ordinance, city officials expected to add about 300 new units to the existing 55,000 over the next 15 years. With the change in zoning, the city anticipates seeing more than 10 times as many units built over the next 15 years.
Fixer-upper Anyone?: Zillow recently published research indicating a shift nationally in home buyer preferences, with "remodeled" homes now commanding a higher premium than fixer-uppers. Buyers will pay about 4 percent more than expected for move-in-ready properties. Previous trends showed fixer-uppers were more desirable, particularly among first-time buyers seeking affordable options. Homes needing work or "TLC" sell for around 8 percent less than expected, approximately $28,000 on a typical U.S. home. Zillow attributes the change to factors like rising renovation costs and buyers prioritizing convenience over the potential for customization. As home value appreciation slows, sellers may find that investing in renovations is a more effective strategy than offering discounted fixer-uppers. Zillow's analysis included more than two million homes for sale in 2024 and 359 listing keywords. First-time home buyers overwhelmed by the work needed on many Boston area homes may want to consider a rehabilitation loan.