The median sales price of a single-family home in Massachusetts rose to a record high of $529,000 in April, more than 20% higher than in 2020, according to new data from the Massachusetts Association of Realtors.
The median price of a condominium also jumped to an all-time high of $485,000, an 11.5% increase compared to the same time last year, the association said in its monthlyreport.
Sales prices jumped as buyers vie for a limited number of properties, prompting multiple offers. That's raised concerns about the lack of affordability in a state with some of the highest real estate costs in the country.
Thomas Callahan, executive director of the Massachusetts Affordable Housing Alliance, said that the data confirms what he's been hearing from homebuyers who are facing bidding wars, sometimes with dozens of offers on the same property. He’s particularly concerned because of the racial disparities in homeownership in the state, which leave many hopeful first-time and first-generation homeowners out of the boom.
“It's really shutting out a lot of first-time home buyers of all races, but particularly ... homebuyers of color,’’ he said.
Joe Kriesberg, president of the Massachusetts Association of Community Development Corporations, said the rising home prices affect the cost of housing in the state in multiple ways — including making it harder for housing developers and nonprofits to compete to create rental homes for lower-income people.
“The more expensive it is to buy it, the more expensive it is going to be to develop it and ultimately rent it out,’’ he said. “We’ve got our hands full, for sure.”
