Fueled by lack of inventory, home prices in Central Mass. remain high
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A new home under construction in Natick in September 2023.
July brought another month of high home prices to Central Massachusetts, as median sales prices remain well above where they were at in 2023.
Both Middlesex and Worcester counties saw higher median sales prices for single-family homes in July; Worcester County’s median rose 6.9% from July 2023, climbing 6.9% to $481,000, while Middlesex County’s median rose 2.4%, increasing to $855,000, according to data released Tuesday by The Warren Group, a Peabody-based real estate research firm.
Both counties saw increases in total sales during July compared to 2023, as Worcester County witnessed 635 sales, a 2.6% increase, and Middlesex County saw 1,030 sales, a 5.9% increase.
Despite this increase in sales locally, the total amount of home sales in Massachusetts so far in 2024 sits at 22,879, a 0.8% increase from this point last year. The lack of available homes to sell remains the main driver in price increases, as high interest rates may be keeping prices from climbing even faster, said Cassidy Norton, associate publisher and media relations director of The Warren Group.
“Interest rates are more than double where they were two years ago, and I’m certain prices would be even higher without those changes,” Norton said in the press release. “That does lead to a lack of inventory that may have abated price gains somewhat. Unfortunately, the lack of inventory will continue to be the biggest factor driving prices for the foreseeable future.”
The city of Worcester saw an increase in both sales and median sales price, with the median price climbing 14.1% compared to last July, reaching $445,000, while the total amount of sales increased from 93 to 104.
Similar trends were seen in Fitchburg, where total sales increased from 23 to 28 while the median price climbed 11% to $407,500. Leominster saw a slight decrease of sales, with 30 compared to 33 last July, as the median price there grew 3.1% to $467,000.
In some prominent MetroWest communities, sales fell as prices climbed. Framingham saw 47 sales compared to 57 in July 2023, with the median price climbing 1.7% to $660,786. Natick witnessed 25 sales this July compared to 28, with the median price increasing 3.5% to $979,000.
The median price for a home across Massachusetts sits at $650,000, a 6.6% increase from July 2023.
Eric Casey is a staff writer at Worcester Business Journal, who primarily covers the manufacturing and real estate industries.
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