March is officially behind us so it’s time for our monthly check-in on the Massachusetts real estate market. Today we’ll discuss the implications of the total residential inventory across the state as well as the median home price.
TOTAL RESIDENTIAL INVENTORY
STATEWIDE INVENTORY
Single-family, condo & multi-family listings
Mar 2019: 13,482 listings
Feb 2022: 3,927 listings
Mar 2022: 4,470 listings
Compared to last year, inventory is still very low. In fact, inventory is 66.8% lower than it was in March in 2019 (pre-COVID times). That’s a whopping 9,012 homes.
On the bright side, month-over-month inventory is starting to come back. There are 543 more homes on the market this month bringing the total to 4,470. That’s a 13.8% increase from February. Still, we have a long ways to go to satisfy current demand.
MEDIAN HOME PRICE
STATEWIDE Median Home Price
Single-family, condo & multi-family listings
Mar 2019: $519,000
Feb 2022: $689,900
Mar 2022: $699,900
As you’re probably aware, home values are quite high right now… The median home price across the state has increased by $180,900 since March of 2019.
This 34.8% increase was due to a variety of factors, most notably the sharp decrease in both interest rates and home inventory.
Historically, home values nationwide appreciate about 3% a year. In Massachusetts, from March 2010 to March 2019, home values rose by about 58% or roughly 6% per year. Compare that to the 11.6% annual appreciation that we are currently seeing and it is obvious that home values are quite a bit ahead of where they should be.
