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assachusetts' single-family home market is experiencing a surge, with median prices reaching $575,000 in February, a 4.9% increase from the previous year. The scarcity of available homes is driving up prices, as buyers compete for limited inventory. Despite stabilizing mortgage rates, demand remains strong, indicating a continued seller's market.

    According to The Warren Group, single-family home sales rose by 4.2% in February compared to last year, with 2,136 properties sold. Experts attribute the price hike to the persistent lack of new housing starts and inventory. "It's a logjam," said Colleen Barry, CEO of Gibson Sotheby's International Realty. "Buyers are competing for each well-priced property, particularly in entry and move-up categories."

    While other regions have seen price stagnation, Massachusetts continues to experience increases due to its desirability and limited inventory. Mortgage rates, currently averaging 6.47% for a 30-year fixed rate and 5.86% for a 15-year fixed rate, may be considered the new normal by buyers who are no longer waiting for significant drops in interest rates.

    Real estate professionals expect strong demand to continue into the spring market, with some optimism about increased inventory. "We're already seeing positive energy from buyers," said Norman D. Hodson of Keller Williams Realty. "While inventory hasn't jumped dramatically yet, leftover 2024 listings are being absorbed." Experts predict continued price increases, albeit at a slower pace than during the pandemic, and anticipate robust sales in the coming months as seasonality returns and more sellers enter the market.