Massachusetts Home Prices Hit $600,000 as Buyers Face Tough Market

The price of buying a home in Massachusetts just hit another milestone — and not necessarily in a good way for many would-be buyers. As of November 2024, the median price of a single-family home across the state climbed to $600,000, a 3.4% increase compared to the same time last year.

It’s a new record for this time of year, and it’s part of a trend that’s been quietly putting pressure on families, first-time buyers, and renters thinking about making the leap into homeownership.

Why Are Prices Still Rising?

Ask almost any local real estate agent and you’ll hear the same answer: there just aren’t enough homes to go around.

Low inventory continues to drive prices up. Many current homeowners are holding onto their properties because they have locked in low mortgage rates from years past. Selling now would likely mean taking on a new mortgage at today’s much higher interest rates — a financial leap many aren’t willing to take.

“I get calls every week from people who are pre-approved and ready to buy, but we just don’t have anything to show them in their price range,” said Diane Moore, a real estate agent based in Worcester. “It’s heartbreaking because they’re doing everything right — saving, budgeting, getting pre-approved — but they can’t get their foot in the door.”

Not All Areas Are Created Equal

While the statewide median price is sitting at $600,000, prices vary a lot depending on where you’re looking.

In Nantucket, for example, the median home price recently hit $2.65 million — making it completely out of reach for most Massachusetts families. Meanwhile, buyers in Hampden County are seeing more affordable options, with a median price of about $319,900.

Still, even in the less expensive areas, buyers are feeling squeezed.

“Western Mass used to be where people went for a little breathing room, but now even here, it’s getting tighter,” said Tom Rivera, a mortgage consultant in Springfield. “People are having to adjust their expectations — smaller homes, longer commutes, fixer-uppers.”

What It Means for Buyers and Sellers

For buyers, this market can feel discouraging. Competition is tough, bidding wars are still common in popular neighborhoods, and the idea of waiting for prices to fall is starting to feel more like wishful thinking.

“I’ve been trying to buy my first home for over a year,” said Jasmine Park, a teacher living in Framingham. “Every time I find something in my budget, it’s already gone before I even get to tour it. And I can’t afford to bid $40,000 over asking.”

On the flip side, sellers are in a strong position — especially if they’re in no rush to find a new place right away. Some are cashing out and moving to less expensive states, while others are staying put, afraid of what they’ll find (or won’t) on the other end.

“Selling sounds great until you realize you still have to buy something else — and maybe at a higher rate,” said Paul Costa, who recently sold his three-bedroom in Taunton but is now renting until the market cools down.

What’s Ahead for the Market?

Economists say we’re unlikely to see a big drop in prices anytime soon. The demand is still there — especially among millennials entering their peak homebuying years — but the supply hasn’t kept up. And while some state and local efforts are underway to encourage new home construction, change takes time.

That means potential buyers will need to stay patient — and creative.

“It’s tough, no question,” said Moore. “But it’s not impossible. We’re seeing more people team up with family, explore towns they never considered before, or take on renovation projects they might’ve passed on a few years ago.”