Nationally median sales prices are expected to go up about 5.4% in 2023, according to Realtor.com. But it could be even more for Massachusetts buyers.
The Realtor.com website released its 2023 housing market predictions last week, stating that mortgage rates will be above 7%, rents will outpace home prices, and overall home sales will decline.
It also predicted 100 of the largest local markets in the United States.
In Boston, Realtor.com predicts that sales growth will be down by less than a percent but that prices will increase by 9.5% yearly. In Worcester, sales growth will increase by 2.5%, while prices will increase by 10.6%. And in Springfield, sales growth will increase by less than a percent, while prices will increase by 8.9% yearly.
A report from October by the Warren Group stated that the median single-family sale price increased 7.8% in Massachusetts on a year-over-year basis. This percentage increase means it went from $510,000 in September 2021 to $550,000 in September 2022.
It was a “new all-time high for September,” the report states.
And it didn’t cool off in October.
Ten of the 20 hottest housing markets in October 2022 were in New England, according to Realtor.com, including Boston, Worcester, and Springfield.
“The Boston metro is the highest-priced market on the list this month, priced 36.7% higher than the next most expensive market, Portland, ME. In addition, the median listing price of the Boston metro in October skewed the list’s average price higher,” the website states. “The Northeast, and the Boston metro specifically, are hotbeds of activity.”
However, with Hickman-Coen Home Team, Helen Coen said there is less “irrational” behavior, and things such as negotiations over price are returning. More price negotiations are a good sign for home buyers in 2023.
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