LYNN, Mass. — The median price of a Massachusetts single-family home has risen to $535,000, a 27.4% increase from $420,000 two years ago. That data comes from the Warren Group, which collects and analyzes information about real estate sales.
According to the Warren Group, the number of home sales across Massachusetts has also fallen for the second month in a row. Real estate experts believe shrinking inventory is putting a limit on sales activity.
There’s another suspected factor in the decline of home sales in the commonwealth. Prices have increased to a point that’s out of reach for many prospective homebuyers.
“Not everyone can afford a $550,000 house. You’d have to have an enormous salary or a huge savings to put a down payment down,” said Timothy Warren, CEO of the Warren Group.
Warren said data suggests a steady shift of homebuyers moving toward communities where the median price of a single-family home is lower than the statewide average.
“I think we’re running out of rich buyers, and people are moving toward more affordable communities,” Warren explained. “Some are blue collar communities like Lynn, which has done really well.”
The median price of a single-family home in Lynn continues to increase at a faster pace than most communities in Massachusetts. However, the current median price of $460,000 is still $75,000 below the state average.
“For a seller/owner, we’re seeing fantastic equity with these people’s lives, life-changing amounts of money,” said Matthew Newhall, owner of Century 21 Tradition in Lynn’s Wyoma Square.
Newhall told Boston 25 News he’s seeing a migration of interested buyers from communities closer to Boston.
“We had been seeing more people from Boston going to Everett, Chelsea and Revere,” Newhall said. “Now those people who were living in Everett, Chelsea and Revere seem to be traveling more north toward Lynn.”
Newhall doesn’t expect the competition of homebuyers in Lynn to die off anytime soon.
“We had a home we listed the other day, we received 28 offers. Most of those were cash investor offers who will then probably renovate and resell,” Newhall added.
Newhall said homes are being scooped up quickly, with houses often selling in less than a week.