— 2 — EXECUTIVE SUMMARY The first half of 2025 saw Massachusetts’ coastal housing markets remain competitive yet gradually stabilizing. Buyer demand stayed strong from Cape Cod up through the North Shore, but tight inventory and higher borrowing costs tempered the frenzy seen in prior years. Median home prices across the region generally inched up modestly year-over-year (or even plateaued in some sub-markets), a notable shift from the rapid price gains of 2020–2022. At the same time, more homes have been coming on the market. In fact, Massachusetts saw a boost in supply this spring – by May, statewide inventory of single family homes was up 6.2% annually (condo inventory up 13.1%) and new listings had risen for three consecutive months. This burgeoning supply is a welcome sign of a balancing market, even if overall inventory remains well below pre-pandemic norms. National factors set the backdrop for these local trends. Mortgage rates remain elevated by historical standards— hovering around the mid-6% range for a 30-year fixed— which continues to pinch affordability and deter some move-up sellers. The Federal Reserve held its benchmark rate steady through early 2025, signaling no cuts until later in the year. This “higher for longer” environment has kept national home sales subdued, though prices have largely stabilized following years of double-digit gains. Inventory nationwide has grown, easing pressure in some regions, but New England continues to experience price growth due to especially tight supply. Cape Cod and Islands Cape Cod’s real estate market in early 2025 continued to reflect tight supply and steady demand, though signs of cooling are emerging. While prices remained high, inventory increased notably—active listings in May rose 16.7% year-over-year for single-family homes and 62% for condos. Days on market have ticked up, and price adjustments are more common. The Cape remains competitive, but buyers now have slightly more leverage than a year ago. South Coast and South Shore The South Coast and South Shore remained in demand for their blend of coastal living and proximity to Boston. Median home prices rose 3–5% year-over-year, reaching the mid- $600,000s to low-$700,000s. Inventory stayed tight, though signs of improvement emerged. New construction continues, though at a slow pace due to regulatory and cost challenges. Homes are still moving quickly, but slightly longer days on market and more selective buyers mean sellers must price strategically. Greater Boston Area Greater Boston’s coastal and metro real estate markets at mid-2025 remain dynamic and resilient. Boston proper saw steady demand, particularly in the Back Bay and South End, where buyers continue to compete for high-end condos and historic brownstones. Median condo prices in these neighborhoods hovered around the $800,000 mark, with some luxury units commanding well over $2 million. While bidding wars are less intense than in past years, well-located and turnkey properties still attract strong interest. Towns like Newton and Wellesley also saw significant price gains, fueled by limited inventory and high-end sales. Meanwhile, select suburbs experienced a rise in listings, offering more options for buyers and driving up transaction volume. Though the market still favors sellers, buyers in the Boston area are gaining some breathing room as time on market edges up and pricing becomes more strategic. North Shore Massachusetts The North Shore market has been a standout performer, with home prices climbing and buyer demand outstripping supply. Essex County’s median home sale price was around $718,000 in May 2025, up about 10% year-over-year. Inventory has ticked up slightly, and homes are taking a tad longer to sell on average, though the market remains fast. Price reductions and negotiation are becoming more common,
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