New data show Mass. home prices keep rising as inventory remains low

Massachusetts home prices continued to rise in March as inventory remains low, according to data from the Massachusetts Association of Realtors.

The median sale price for a single-family home in Massachusetts climbed to $609,900 last month, about 9% higher than the same time last year, the association found. Similarly, condo prices rose by 7.8% to $555,000 from this time last year.

The number of single-family homes sold dropped 6% compared to a year ago.

Amy Wallick, president of the Massachusetts Association of Realtors, said the big problem is the lack of homes going up for sale. While four months of inventory is what experts consider more of a "balanced market," the commonwealth only has 1.1 months of supply of inventory, said Wallick.

With interest rates double what they were just a few years ago, people are less likely to sell, Wallick said. Those who financed their home loans during the pandemic when interest rates were low are not as motivated to sell when interest rates on new home would be higher.

"There are so many ready, willing, able, qualified and very active buyers out there, and we just do not have enough sellers," said Wallick, who is also a realtor with Lamacchia Realty.

The data from March is consistent with trends from recent months, said Wallick, and she anticipates these patterns will last at least into the summer.

"It is certainly a challenging time to buy, but there is plenty of opportunity that does become available, and it's an excellent time for sellers to sell."

Gov. Maura Healey has made increasing housing stock a big part of her agenda. In October, Healey pitched a $4.1 billion bond bill aimed at spurring the creation housing in the state.

Part of the plan would give single-family homeowners statewide the right to build “accessory dwelling units” of less than 900 square feet on their lots.

In a press release announcing the new March home sales data, Wallick noted that plan would help kick the spring market into gear. She said the association was "remaining optimistic" about several municipal plans around the state that would allow accessory dwelling units by right, which would add inventory to the market.