Massachusetts Home Prices Continue to Rise, Affordability Declines

Prospective homebuyers have been feeling the pain of rising home prices and higher interest rates. The Massachusetts Association of Realtors recently reported that its Affordability Index for single-family homes stood at 55 in May, a 30 percent drop compared to May 2021. The index measures housing affordability, considering interest rates, median sales price, and average income by county. A higher number indicates greater affordability. For example, an index of 115 means the median household income is 115 percent of what is necessary to qualify for the median-priced home. The condominium index fell 25 percent to 64. Two years ago, the single-family index was 96, and the condominium index was 104.