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GREATER BOSTON
Sales activity in the Greater Boston real estate market was down in the first quarter of 2024 (Q1 2024) compared to Q1 2023. Just under 4% fewer single-family homes sold and more than 8% fewer condos sold when compared to last year, as fewer homes were available to buy. The following observations are drawn from year-to-date MLSPIN data encompassing over 100 towns in Greater Boston communities through March 31, 2024.
What has inventory looked like this quarter?
The number of homes available to buy at the end of the quarter was significantly lower than it was at the end of the same period in 2023, even though the number of new listings brought to market over that time period was roughly the same. The number of single-family homes available on March 31, 2024 was down almost 22% vs March 31, 2023. The number of condos available was down just over 5%. Limited inventory led to homes selling quickly and at higher prices, which was positive news for sellers, but challenging for buyers.
What are current home price trends?
Prices were up over the first quarter of last year for both single-family and condo homes. For Q1 2024, median sales price for single-families increased almost 11% year-over-year to $761,500, and the average sales price increased almost 10% to $1,017,201. The median condo price was $630,000, up almost 6.5%, and the average condo sold for $814,366, up almost 6%.
Have days on market increased or decreased relative to last year?
With few homes on the market for buyers to choose from, most homes sold quickly. In Q1 2024, the typical single-family seller accepted an offer within 9 days of listing their home for sale, while the typical condo seller accepted an offer within 11 days. This statistic indicates that homes sold over 30% faster compared to Q1 2023 for both property types.
What can buyers/sellers expect for the upcoming quarter?
Interest rates will be a determining factor for the future of the real estate market, and it doesn’t appear that we will see major changes to rates in 2024, according to housing experts (Forbes Advisor). Many homeowners are reluctant to put their homes on the market when it will mean that the next home they buy will be more expensive, not just because prices continue to appreciate, but also because their next mortgage is anticipated to be at a much higher interest rate. This hesitancy by sellers to trade up (or down) will keep inventory low. This puts pressure on prices, and also further reduces motivation to sell since there are fewer good options available to buy. While policies such as the new multi-family zoning requirement for MBTA communities (Mass.gov) may help create more housing inventory, particularly for condos, it could be years before we see those results. A drop in interest rates would potentially have a more immediate and widespread unlocking effect on inventory. However, rates are not expected to drop significantly enough to solve the inventory problem. Rates are predicted to come down slowly and slightly over the course of the year. This would help bring more homes to market, providing more choices for buyers and slowing down rising prices.
CAPE COD AND THE ISLANDS
What was the market like for Cape Cod?
The 497 single-family sales on Cape Cod in Q1 2024 represented a 7.6% year-over-year decline. Median sales price was $917,749, a 2.6% jump. Average days on market was down 10.2% to 44 days. This same period also saw 138 condo sales, a .7% increase from Q1 2023. Median sales price declined 9.4% to $466,166. Days on market (49) was down 9.2% year-over-year.
“At the start of 2024, Cape Cod’s real estate market demonstrated robust demand, with notable increases in home prices, rapid inventory turnover, and higher sales volumes. In the first quarter, I guided clients to swiftly navigate the competitive landscape. With the onset of the spring market, I anticipate capitalizing on the ongoing strong demand and scarce supply, suggesting a favorable environment for sellers and the necessity for buyers to plan to move quickly, though thoughtfully. I remind buyers that we cannot control what other buyers are willing to pay for a property and instead need to focus on putting their best effort forward.”
– Diana Lucivero, Cape Cod Compass Agent
What was the market like for Martha’s Vineyard and Nantucket?
The 79 single-family sales on Martha’s Vineyard and Nantucket in Q1 2024 represented a 25.5% year-over-year decline. Median sales price was $2.7 million, a 36.6% jump. Average days on market was up 78.6% to 284 days.
“In the beginning of the 2024 real estate market, significant takeaways revolved around the strong signs of growth compared to the previous year. Specifically, noted is an increase in total volume, despite fewer sales, and significant jumps in both median and average selling prices. This market indicator is a promising trend for the market’s health and potential for profitable transactions. I’ve applied these indicators by advising my clients to maintain confidence in the market. I emphasized the importance of remaining active during traditionally slower periods, such as winter, to continue showcasing/advertising properties to the specific buying audience interested in seasonal luxury residences. By remaining “on market” sellers could capitalize on the increasing demand and favorable pricing trends.”
– Marybeth Gilmartin-Baugher, Nantucket Compass Agent
