Home sales in Massachusetts saw a modest increase of 3 percent in 2025, signaling potential stabilization in a previously tumultuous housing market. According to data from The Warren Group, the state recorded 43,240 single-family home sales, up from 42,138 in 2024. Alongside the rise in sales, the median price of single-family homes also experienced a notable increase, climbing by 3.7 percent to reach $638,000 by the end of the year.
Observers, including Cassidy Norton, associate publisher at The Warren Group, suggest that these trends indicate a shift towards a more balanced housing market. Norton noted that the moderate rise in both sales and prices implies a better equilibrium between buyers and sellers. She emphasized that factors such as increased inventory and stable mortgage rates played crucial roles in this stabilization process.
As of January 15, 2025, the average rate for a 30-year fixed mortgage stood at 6.06 percent, a decrease from nearly 7 percent the previous year. This figure marks the lowest average since September 2022, according to data from Freddie Mac, compiled by the Federal Reserve Bank of St. Louis.
In an effort to address the ongoing housing shortage in the state—estimated to exceed 200,000 units by 2030—Governor Maura Healey signed a housing law in 2024 aimed at accelerating development. In December, Healey reported that her administration had initiated or completed the construction of 100,000 homes. She also highlighted the release of 450 acres of surplus state land designated for future housing projects, projecting the potential for thousands of new homes.
To provide context, 2022 saw 52,639 single-family home sales and a median sale price of $550,000. This represented a decline of 15.9 percent in sales and an increase of 7.8 percent in prices compared to 2021. Following a downward trend, total sales dropped to 40,828 in 2023, marking the lowest volume in twelve years, while the median price rose to $570,000. In 2024, the median price for 42,138 sales climbed further to $615,000.
The upward trajectory of home sales and prices in 2025 could signal a turning point for Massachusetts’ housing market, offering hope to prospective buyers who have long grappled with accessibility and affordability challenges. As the state moves forward with its housing initiatives, the focus will be on maintaining this balance and addressing the pressing need for more housing options.
