Boston 2023 Recap

The Massachusetts real estate market, especially in the Greater Boston Metro area, has seen significant shifts between 2022 and 2023. As of December 31, 2023, we'll explore key statistics and trends to provide insights into the state of the housing market in this dynamic region.

Single Family Homes

Listing Inventory

One of the most notable changes has been the decrease in listing inventory. In December 2022, there were 3,240 single-family home listings, but by the end of 2023, this number had dropped to 2,845—a decrease of 12.19%. This reduction in available homes suggests a more competitive market for buyers.

Average Days on Market

While the average days on market increased slightly from 94 days in 2022 to 95 days in 2023, this 1.06% increase indicates that homes are still selling relatively quickly, reflecting continued demand in the region.

Pricing Trends

The average list price for single-family homes saw a significant increase, rising from $1,150,415.60 in 2022 to $1,380,864.22 in 2023—an impressive 20.03% increase. Additionally, the average list price per square foot increased by 13.22% over the same period.

Absorption Rate and Months Supply of Inventory

The approximate absorption rate decreased from 118.32% in 2022 to 106.37% in 2023, signaling a shift towards a more balanced market. The months' supply of inventory increased by 10.59%, moving from 0.85 months in 2022 to 0.94 months in 2023. This increase suggests a slightly more favorable environment for buyers.

Year-to-Date Analysis

Listings and Prices

When analyzing the year-to-date data, we see a substantial decrease in the number of listing units taken, with 10,472 fewer listings in 2023 compared to 2022—a decrease of 19.55%. However, this reduction in listings has been accompanied by an increase in average original list prices and list prices per square foot.

Pending Listings

Year-to-date data also shows a decrease in the number of listing units that went pending in 2023 compared to 2022, with 8,491 fewer listings—a decline of 18.06%. This decrease may reflect a tighter market with a lower inventory of available homes.

Days to Offer

While the average days to offer increased from 20 days in 2022 to 24 days in 2023, this 20% increase still indicates a relatively brisk sales pace in the Greater Boston Metro area.

Sold Properties

Closed Units

The number of closed units in 2023 decreased by 9,610 units (20.93%) compared to 2022. Despite this decrease, the average sale price increased by 4.79%, reaching $756,034.31 in 2023.

Price Metrics

Several price metrics show an increase in 2023 compared to 2022. These include the average sale price per square foot, the average list price, and the average list price per square foot. However, the average sale price as a percentage of the list price and the original list price saw slight decreases.

Short Sales and Lender-Owned Properties

The number of sold short sale units decreased by 10.61%, while lender-owned properties increased by 29.33%, indicating shifting dynamics in the market.

12-Month Activity

Listing Activity

Looking at the broader 12-month activity, we observe decreases in listings, units with price changes, units that went pending, and units sold. This suggests a more competitive and rapidly changing real estate landscape in the Greater Boston Metro area.

The Greater Boston Metro real estate market in 2023 has witnessed significant changes, with reduced listing inventory, increased prices, and shifting dynamics in year-to-date and 12-month activity. While it remains a competitive market, there are opportunities for both buyers and sellers to navigate the evolving landscape of this vibrant region. As we move further into 2024, monitoring these trends will be crucial for those involved in the Massachusetts real estate market.