Massachusetts Home Sales Dip Over 10% to Start 2026, Prices Continue to Rise
Despite slightly lower interest rates, the Massachusetts housing market is experiencing a slow start to 2026, with single-family home sales down more than 10.5% compared to the same period in 2025. The persistent combination of limited inventory and escalating prices continues to drive up the cost of living in the state.
Through the first two months of the year, 4,274 homes have been sold, a decrease from the 4,779 homes sold in the first two months of 2025, according to The Warren Group. February alone saw 1,969 homes sold, an 8% drop from February 2025.
“February usually has a reduced number of sales compared to other months, and last month was no exception,” said Cassidy Norton, associate publisher of The Warren Group. “In addition to recent market fluctuations due to the interest rate environment, tariff concerns, and lack of inventory, this February also had a series of snowstorms, consecutive days with a windchill of less than zero, and days-long power outages.”
Median Home Prices Climb
Whereas the number of homes sold has decreased, the median price of those sales has continued to rise. As of the end of February 2026, the median sale price reached $595,000, a 2.6% increase from $580,000 at the end of February 2025.
Housing Production Efforts Underway
State policymakers are relying on a 2024 housing production law to address the projected housing shortage of over 220,000 units by 2030. Governor Maura Healey announced in December that the state has “started or built 100,000 homes.”
However, new housing authorizations are declining. Preliminary data from the U.S. Census Bureau indicates 12,096 new private housing units were authorized by building permits in Massachusetts in 2025, a 15.6% decrease from the 14,338 units authorized in 2024. January 2026 saw 580 units authorized.
Condo Market Also Slows
The condominium market is also experiencing a downturn. Through February 2026, 2,026 condo sales have been recorded, down from 2,266 in the first two months of 2025. The year-to-date median sale price for condos has decreased by 3.7% to $505,000.
“In addition to the same patterns affecting the single-family market, there was an influx of condo inventory late last year that has largely been sold,” Norton added. “Without that bump in the market, the number of sales have dropped along with the inventory.”