The Massachusetts real estate market, particularly in the Town of Franklin, MA, is presenting unique challenges and opportunities as we transition into 2024. This post provides a comprehensive overview of the 2023 real estate market in both in Franklin and throughout Massachusetts, and gives insights for both home buyers and sellers into the trends that will shape your real estate experiences in 2024.
Winning strategies in 2024
Our video summarizes what’s critical to know in 2024 for those navigating the Massachusetts real estate market.
The 2023 real estate market at a glance
The median sale price for single-family homes in Franklin rose to $680,000in in 2023, a 7% increase from the previous year. The statewide median settled at $600,000 for the year, marking a 4.3% rise. Rising home prices, underpinned by a starkly low housing inventory, look set to continue in 2024.
As the above market summaries show, single-family home sales volume fell in Franklin and in all of the Bay State in 2023. This was due to severely restricted inventories of homes for sale, not due to any slackening of demand. On average, listings sold above asking price throughout the year.
Home prices soar while home sales volume tanks .
Since the onset of the COVID pandemic in 2020, Franklin has experienced a 34% increase in median single-family home sale prices, while Massachusetts witnessed a 30% rise.
The sharply upward trend in prices starkly contrasts with the collapse in home sales volume, which likewise started in 2020 and continued through 2023.
On the face of it, having home prices rise sharply while the number of homes sold plummets seems counterintuitive. Declining home sales typically happens when demand for homes weakens. Not the case in Massachusetts: buyers have remained avid for listings continuously since 2020!
Supply of homes for sale keeps dwindling
Look at the number of single-family homes for sale each January 15, looking back to 2019:
From 29 single-family homes for sale in Franklin on January 15, 2019 there were only two homes available in Franklin on January 15 of 2024. It’s a similar story for Massachusetts as a whole. From nearly 8,900 homes available in the Bay State in mid-January of 2019, this January 15th there were only approximately 2,900 homes for sale on MLS-PIN.
It’s the inadequate number of Massachusetts homes for sale that has both driven home prices so much higher since 2020 and which has caused home sales volume to tumble in MA during the same time period.
The 2024 Outlook for Real Estate
The Franklin and Massachusetts real estate markets are likely to continue experiencing low supply and high prices in 2024. But what does this mean for you, whether you’re buying or selling a home?
For First-Time Home Buyers: In this market, the safest bet is to purchase a home that meets your needs for the foreseeable future, ideally for the next 5-7 years.
With mortgage rates starting to slip in 2024, it’s a good time to buy, keeping in mind the possibility of refinancing if rates drop further. Be strategic: look for homes that haven’t sold quickly and may be open to lower offers.
For Current Homeowners: Many of you are looking to sell, either to upgrade or downsize. The key in 2024 is to break the cycle of hesitation that’s stifling the market.
List your property with the condition of finding your next home. This approach not only makes you a more attractive buyer but also contributes to opening up the market by increasing inventory.
For Prospective Home Sellers: Homes that struggled to sell in 2023 often lacked updates. Before listing, invest in freshening up your property.
Work with a knowledgeable agent who can guide you in pricing and marketing your home effectively. Remember, an overpriced home is less likely to sell in this discerning market.
Here’s to making informed choices and successful moves in the Massachusetts real estate market in 2024. Contact me, Warren Reynolds, at 508-561-6259 for personalized assistance and guidance!