The Massachusetts Housing Market Is Finally Turning a Corner Going into 2026

After a few years of high mortgage rates, low inventory, and cautious buyers, the Massachusetts housing market is finally showing signs of life again. Sellers are stepping out. Buyers are re-engaging. And for the first time in a while… things are moving.

No, it’s not a boom. But it is a meaningful shift — and it’s setting the stage for a stronger, more balanced market as we head into 2026.

Here are the three major trends driving the rebound right here in Massachusetts:

1. Mortgage Rates Are Drifting Down — and MA Buyers Are Feeling the Relief

Rates have fluctuated all year, but the overall trend has been downward, and that’s what matters most. Many Massachusetts lenders have reported the best rates of 2025 in recent months — creating real breathing room for buyers.

According to Sam Khater, Chief Economist at Freddie Mac:

“On a median-priced home, this could allow a homebuyer to save thousands annually compared to earlier this year, showing that affordability is slowly improving.”

That’s big news in a state where the median home price continues to climb.

For example, Redfin estimates that a buyer with a $3,000 monthly budget can now afford about $25,000 more home than they could last year. In competitive markets like Greater Boston, the North Shore, and MetroWest, that extra buying power matters.

2. More Massachusetts Sellers Are Finally Listing

The “lock-in effect” (homeowners keeping their ultra-low rates) kept Massachusetts inventory extremely tight for years. But as rates ease and life changes (new jobs, growing families, downsizing) kick in, more MA sellers are deciding to make a move.

Realtor.com data shows that inventory is rising nationally, and Massachusetts is following that trend — with more homes hitting the market compared to the last several years.

This is especially noticeable in:

• Middlesex County
  
  
• Essex County
  
  
• Worcester County
  
  
• Plymouth & Norfolk suburbs
  
  

More inventory = more options for MA buyers, and a market that’s slowly moving back toward balance.

3. Buyer Activity in Massachusetts Is Picking Up Again

With slightly better affordability and more homes to choose from, MA buyers are stepping back in.

The Mortgage Bankers Association (MBA) reports an increase in purchase applications compared to last year, signaling rising demand. We’re seeing this on the ground too — more showings, more inquiries, and more pre-approvals.

Economists from Fannie Mae, the MBA, and the National Association of Realtors all expect moderate sales growth going into 2026, and Massachusetts is aligned with that forecast.

Bottom Line

After several slower-than-normal years, the Massachusetts housing market is finally turning a corner. Lower rates, more listings, and increasing buyer activity are laying the foundation for a healthier, more active market as we move into 2026.

If you’re planning to buy, sell, or invest in MA next year, now is the time to get prepared.

Let’s connect and talk about what this shift means for your plans in 2026.