Prediction for 2023 Real Estate Costs, Rates

Nationally median sales price are expected go up about 5.4% in 2023, according to Realtor.com. But it could be even more for Massachusetts buyers.

The real estate website released its 2023 housing market predictions Wednesday, stating that mortgage rates will be above 7%, rents will outpace home prices and overall home sales will decline.

It also made predictions for 100 of the largest local markets in the United States.

In Boston, Realtor.com predicts that sales growth will be down by less than a percent but that prices will increase by 9.5% year over year. In Worcester, sales growth will increase by 2.5%, while prices will increase 10.6%. And in Springfield, sales growth will increase by less than a percent, while prices will increase by 8.9% year over year.

A report from October by the Warren Group, stated that the median single-family sale price increased 7.8% in Massachusetts on a year-over-year basis. This means it went from $510,000 in September 2021 to to $550,000 in September 2022.

It was a “new all-time high for the month of September,” the report states. And it didn’t cool off in October.

Ten of the 20 hottest housing markets in October 2022 were in New England, according to Realtor.com, including Boston, Worcester and Springfield.

“The Boston metro is the highest-priced market on the list this month, priced 36.7% higher than the next most expensive market, Portland, ME. The median listing price of the Boston metro in October skewed the list’s average price higher,” the website states. “The Northeast in general, and the Boston metro specifically, are hotbeds of activity.”