Without exception, everyone in real estate is talking about the lack of inventory. It’s been sinking for years – creating a lot of pent-up homebuyer demand – and is now at historic lows.

Sinking Inventory Drives Home Prices Higher

Economics 101 says increasing demand coupled with decreasing supply equals rising prices – and to the surprise of no one, the end of this trend in the Bay State’s real estate market is nowhere in sight. The median sale price in 2017 jumped 5 percent to $365,000, a new record high, according to recently released analysis from The Warren Group, publisher of Banker & Tradesman. The number of single-family homes sales dropped 1 percent year over year in the state – a difference of just 102 sales.