Massachusetts Housing Market Predictions for Last Quarter of 2024

As 2024 approaches the year-end, real estate market in Massachusetts  is expected to have  an interesting final close out for the year.  We are still experiencing ever-evolving economic conditions, uncertainty with interest rates, existing low inventory and changing buyer behaviors.  So what are the predictions for the Massachusetts housing market for the last quarter of 2024? Read on to see what analysts are expecting as we enter the last quarter of 2024 and insight as to what we, the Realtors, are seeing in housing trends.

1. Inventory Remains Tight

The number of homes for sale continue to remain low and frustrate home buyers who are actively looking, contributing to increased home prices. Homeowners who locked in low mortgage (“lock-in effect“) rates during the pandemic are reluctant to sell and buy new homes with higher rates. As a result, potential sellers might experience less competition, making this a potentially favorable time to list and benefit from a higher final sales price.   Another contributing factor to the low inventory is the short-term rental market.  Many people who purchased with low interest rates discovered they hated their house.  But rather than selling it and losing the interest rate, they are joining the growing army of  AirBNB & VRBO, further frustrating the limited Massachusetts housing market inventory.  Luckily, more and more cities, states and towns are setting limits and restrictions on the short-term rental market.  But how long will it take for that inventory to come on the market for sale, if ever? Only time will tell.

2. Rising Interest Rates Impacting Buyers

Mortgage rates, which soared throughout 2023, remain high, but promises of rates drops are still affecting affordability for many buyers as home prices remain high. As a result, we hope to expect to see a more balanced market for 4th quarter of 2024 and into the 2025 Real Estate Market. Price growth is slowing slowing in many areas, especially for luxury properties. First-time buyers may have to adjust their budgets and searches in less competitive areas like Worcester County and the Blackstone Valley.  With the impending election and promises of reigning in the Fed for rate cuts, many are hoping that after the election inventory will enter the market.  Unfortunately, mortgage rates will likely continue to affect home buying in Massachusetts, unless and until we see more inventory to create competition among listings thus moving prices downward. We anticipate rate cuts not helping the housing market as many predict.

3. Popular Neighborhoods Continue to Attract Buyers

Despite affordability challenges, certain areas in Massachusetts are poised to remain hot. Towns like Somerville, Lowell, and Cambridge are expected to see steady demand due to proximity to Boston and access to public transportation. Buyers looking for single-family homes in these areas will need to move quickly, as demand often outstrips supply.  Many first time home buyers are taking their searches to west Massachusetts like areas of Worcester County and Blackstone Valley because your budget for Boston areas and towns along the major routes like 93, 95, 495 and the Massachusetts Turnpike, go much further in the Worcester County areas.  Here are a few of the towns experiencing an increase in home buyers due to their affordability, quality of life, and community amenities, making them attractive to a variety of home buyers in 2024.  Blackstone, Upton, Whitinsville, Northbridge, Uxbridge and Sutton.

If you are ready to explore different areas to find your affordable, dream home in one of Massachusetts’ trending areas in the Blackstone Valley – Whether you’re a first-time buyer or looking to upgrade, towns like Blackstone, Upton, Whitinsville, Northbridge, Uxbridge, and Sutton offer incredible opportunities for affordable living, nice eateries, outdoor activities, etc.. Don’t wait—contact me today to start your home search and explore the best properties these neighborhoods have to offer! Your new home is just a call away!  Call/text me: 508 – 254 – 8093 or email me:  Lori.Poirier@NEMoves.com

Predictions for Home Prices:

While home prices in Massachusetts have seen significant growth over the past few years, we anticipate a more balanced market in Q4 2024. Here are a few key points regarding home pricing:

• Price Stabilization: After a period of rapid appreciation and a good long run for home sellers, home prices are expected to finally stabilize. This shift could make homeownership more attainable for first-time buyers.  We are already seeing less people attending open houses, less offers and more importantly, less over-bidding on homes.  Buyers are definitely becoming more selective on which properties they will do an offer on.  We have slightly more inventory to choose from yet buyers are no longer feeling like they will miss out if they don’t submit an offer.
• Market Segmentation: Luxury properties may experience a different trajectory, as affluent buyers continue to invest in high-end real estate. However, entry-level homes may see increased competition, driving prices up slightly.  We have, unfortunately, out priced the average first-time home buyer whose income was on the lower-middle range to now being more in line with middle-middle income with two buyers with very good income as the new “first-time” home buyer.  The costs to build new construction homes, far exceeds what trade-up home buyers can afford causing new construction properties to sit much longer.
• Massachusetts Housing Market Sentiment:  In general, home buyers are battle weary with many giving up their hopes of homeownership.  It used to be people bought their first home before marriages. Thanks to un-affordability levels now those people have opted for destination weddings and showers.  Will this bite sellers in the ass?  Probably, at some point it will but the correction is needed.  The home prices and rent prices just are not sustainable.

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Coldwell Banker Realty
220 Franklin Village Dr., Franklin MA 02038
Mobile/Text: (781) 269-2195
Email:  Lori.Poirier@NEMoves.com