End of Year Market Review

Massachusetts, Medford, Melrose & Malden

The 2023 real estate market had a slow year nationwide, with the number of existing-home sales dropping 19% from 2022 and about 34% from 2021! That’s pretty brutal and a huge reason prices did not follow suit, despite the increase in rates. In Massachusetts we saw a whopping 25% fewer single family sales from last year.

Statewide: 2023 Massachusetts Real Estate Recap

There were around 35,000 single families sold across the state with a median sale price of $600,000, which is $25,000 higher than the previous year. Buyer were more hesitant to pull the trigger, which meant days on market rose from 19 to 23. 

Price changes were also more common in 2023, with nearly a quarter of the active listings receiving price changes. It was a difficult market for sellers to accept that while competition was fierce, pricing needed to be tighter in order to attract buyers.

Despite the contraction, homes sold for on average, $10,000 above list price. 

With just 223 homes sold, demand actually slowed down slightly, with the median sale price dropping by $15,000 and the average days on market jumping up by 3 to 17. 

Overall the Medford market is holding steady but clearly the condo market is still in higher demand. This barrier to ownership is higher in Medford than towns like Malden, so the more attainable prices condos offer kept demand higher and buyers pushing them up closer and closer to the single family level.

Melrose suffered from a devastating lack of inventory with 42% fewer sales. It’s no surprise to see that the already highly in demand market of Melrose saw an increase in median sale price due to this lack of inventory, rising to $865,000. Despite that, days to offer actually increased as buyers considered their options more closely.

Overall the Melrose real estate market is still one of the strongest with quick access to Boston for commuters looking for beautiful Victorian homes and a quaint and bustling downtown. 

With just 151 homes sold, demand held very strong in Malden and on average sale prices increased by about $50,000, with the new median home price being $665,000.

Interest rates jumped to a peak of 8% in October, nearly 2 points higher than their low in January and where they are trending as we wrap up 2023. Despite that, the average days to offer stayed the same as demand held strong for single families. 

Multi-family homes in Malden have had a stellar several years but growth has finally started to slow down. Median sale price only increased by $6,000 while inventory decreased by 19%.

Overall the Malden market is holding strong but single family sales are the real break out in 2023.