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A Tale of Two Halves (Jan–Jun 2025)
🏡 Massachusetts Real Estate Market
In the first half of 2025, the Massachusetts single-family housing market painted a vivid picture of strong demand, rising prices, and swift sales. With 16,933 homes sold, the market moved at a brisk pace, averaging just 39 days on the market and 27 days to receive an offer.
📈 The Heart of the Market
The sweet spot for buyers and sellers was between $500,000 and $999,999, where over 8,700 homes changed hands. Homes in this range sold quickly—often within 23 to 26 days—and frequently above asking price, with sale-to-list price ratios hovering around 102–103%.
💰 Luxury Moves Slowly
At the top end, the luxury market (homes priced $3M and above) saw fewer transactions—just 322 homes—but with much longer timelines. These properties lingered on the market for 87 to 150 days, reflecting a more patient buyer pool. The highest recorded sale reached a staggering $17 million.
🏘️ Affordable but Scarce
On the other end, homes under $200,000 were rare, with only 119 listings in total. These properties took longer to sell and often closed below their original list prices, suggesting limited demand or condition-related challenges.
📊 By the Numbers
- Average Sale Price: $854,781
- Median Price: $669,000
- Total Market Volume: $14.47 billion
- Highest Volume Segment: $500K–$699K range
- Strongest SP:LP Ratio: $700K–$999K range (103%)
- Fastest Sales: $400K–$699K homes (23–25 days to offer)
Great Wealth Transfer
The Great Wealth Transfer refers to the unprecedented intergenerational shift of wealth currently underway, primarily in the United States, but with global implications.
🔍 What Is It?
The Great Wealth Transfer is the largest transfer of wealth in history, as baby boomers and the Silent Generation (those born before 1946) pass down their accumulated assets to younger generations — primarily Gen X, millennials, and Gen Z.
- Estimated total: Over $84 trillion is expected to change hands by 2045.
- Heirs vs. Charity: About $72.6 trillion will go directly to heirs, while nearly $12 trillion is projected to be donated to charities
💰 What’s Being Transferred?
Assets that will be passed down:
- Cashand other liquid assets
- Real estate
- Investment portfolios (stocks, bonds, retirement accounts)
- Businesses and business interests,
- Personal property and heirlooms
🌍 Why does It Matter?
This massive shift has broad economic and social implications – noteworthy are
- Wealth concentration: The top 10% of households will receive the majority of the wealth, with the top 1% holding as much as the bottom 90% 2Wikipedia
- Changing values: Younger generations are more likely to prioritize social responsibility, sustainability, and impact investing, potentially reshaping financial markets 1Money.com
- Economic ripple effects: It could affect housing markets, education, healthcare, and even politics, as wealth influences access and opportunity 2Wikipedia
🧭 How to get ready for it and Prepare better
Since this might affect your own financial planning or inheritance strategy, it is important to prepare better because it involves both financial and emotional planning to ensure a smooth and responsible transition of assets across generations. For both those giving and receiving wealth, preparation is key. Prepare Prepare Prepare
- Estate planning: Wills, trusts, and beneficiary designations are essential.
- Tax strategies: Tools like Roth conversions and step-up in basis rules can minimize tax burdens 3Bankrate
- Financial literacy: Education and planning crucial because many heirs may not be financially prepared for this transfer.
Some quick key steps to prepare beter include list below and ends with a well created and personalized family checklist or template for your family’s wealth transfer plan outlining a basic estate planning roadmap. Start with:
🧭 1. Open Family Conversations 1cnbc.com
- Talk about money early and often: Many families avoid discussing finances, which can lead to confusion or conflict later
- Set expectations: Clarify what heirs can expect to receive and when, and discuss the values you want to pass along with the wealth. Manage well
📜 2. Create or Update Your Estate Plan 1cnbc.com
- Wills and trusts: Ensure you have a valid will and consider trusts to manage how and when assets are distributed. Well documented and in appropriate trusts to avoid probate isues later too.
- Healthcare proxy and power of attorney: These documents are essential in case of incapacity.
- Beneficiary designations: Regularly update update and update these on retirement accounts, insurance policies, and bank accounts
💼 3. Work with Professionals 1cnbc.com
- Financial advisors: Help with investment strategy, tax planning, and wealth preservation.
- Estate attorneys: Draft and review legal documents.
- Accountants: Assist with tax-efficient strategies for gifting and inheritance
🧠 4. Educate the Next Generation
- Financial literacy: Teach heirs about budgeting, investing, taxes, and estate planning. Start early.
- Use a checklist: Evaluate their understanding of key financial concepts and identify areas for improvement 2 hancockwhitney.com
- Family finance meetings: Regularly discuss the family’s financial goals and legacy plans 2 hancockwhitney.com
🧾 5. Plan for Taxes and Legal Changes
- Estate tax exemption: Currently high (nearly $14 million per individual in 2025), but may drop after 2025 unless extended 1cnbc.com
- Gifting strategies: Use annual gift exclusions and lifetime exemptions to reduce taxable estates.
- Prenuptial agreements: Especially important if you want to protect family wealth from marital disputes 3 ubs.com
🧩 6. Customize Based on Heirs’ Readiness
- Tailor strategies: Use trusts or conditional inheritances for heirs who may not be ready to manage large sums.
- Align with values: Some families tie inheritance to education, employment, or charitable involvement 2 hancockwhitney.com
According to USA Today, “Why should people think about inheritance now? The so-called great wealth transfer has begun. Nearly $124 trillion in assets will change hands through 2048, according to estimates by the consulting firm Cerulli Associates. Recipients are expected to inherit some $106 trillion of that amount, mainly from baby boomers, with the rest going to charity.” – https://www.usatoday.com/story/money/personalfinance/2025/06/27/how-disclaim-inheritance-why/84330310007/
Accessory Dwelling Units
Accessory Dwelling Unit
Accessory Dwelling Units (ADUs) are secondary housing units which are located on the same lot as a primary residence. ADUs offer additional living space or rental income opportunities. These units can be attached to, or can be detached from, the main house, and are often referred to as “in-law suites,” “granny flats,” or “secondary suites”.
Purpose:
ADUs provide housing for family members, generate rental income, or offer a space for downsizing homeowners. Types:
ADUs can be internal (within an existing structure, like a basement or attic conversion), attached (as an addition to the main house), or detached (a separate structure on the property, such as a garage conversion or a new cottage). Benefits:
ADUs can also help address housing shortages, offer affordable housing options, increase property values, and provide flexibility for multi-generational living (my favorite). Regulations:
ADUs construction is not free for all and for safety reason are subject to local zoning regulations and building codes. In Massachusetts, this new state laws has made it easier to build ADUs by reducing permitting requirements but NOT eliminating building code. Cost:
Personal choice on return. According to Boston.gov, building an ADU can range from price typically in range of $75,000 to $350,000 or more, depending on the type and size. At some point, it is not worth spending much more that affects house value with little to no marginal returns.
As an Investment
The ADU law applies to investment properties also. The law does allow homeowners to create ADUs, which can be rented out, even if the owner doesn’t live on the property, in either the primary dwelling or the ADU. This is big Investment opportunity too because it means that investors can add an ADU to a single-family home they own and then rent it out, which effectively creates a two-unit rental property; perhaps a significant and potential opportunity for higher income for real estate investors to now expand their rental portfolios by adding ADUs to existing properties, increasing their number of rentable units without needing to purchase a separate multi-family building.
Compliance with regulations:
Once again, while the law allows for ADUs on investment properties, it’s crucial for owners to ensure compliance with all relevant regulations, including size restrictions, building codes, and zoning requirements. Always talk to the town the property is in to find out other applicable requirements, if any. Short-term rental restrictions:
Owners will have to check with their town rules for compliance on length of rentals. While long-term rentals are generally permitted, short-term rentals (like Airbnb) may have additional restrictions. However, in many cases, ADUs are permitted “by-right” in zoning districts where single-family homes are allowed. This means that they don’t require a special permit even if the principal residence may require a special permit.
Interested in more, here is a link to a well written article: Accessory Dwelling Units New MA Law Change on Feb 2, 2025
Factors Affecting Zoning
City of Cambridge, MA made a huge historic move and eliminated Single Family re-zoning in hopes of helping addressing housing shortages.
This change eliminates both the single-family and two-family restriction zones but allows townhomes and buildings that are up to four stories for all locations and up to six-stories on 5,000 square feet and larger lots.
There are pros and cons with this move that only time will show. The clusters, addressing proper following of rules, parking, additional vehicles, lighting blockages on home windows, etc. More to follow. Nicely captured video.
Top 12 Environmental Factors To Watch When Purchasing Real Estate
Environmental Factors to Watch for When Buying a Property
When purchasing a property, it’s crucial to consider various environmental factors that can impact the safety, value, and overall suitability of your investment. Here are twelve key factors to keep in mind:
- Lead Paint Homes built before 1978 may contain lead-based paint, which poses serious health risks, especially to children. Federal law requires sellers to disclose known lead paint hazards and provide buyers with relevant information.
- Title 5 In Massachusetts, Title 5 regulations govern the inspection and maintenance of septic systems. A Title 5 inspection is required before the sale of any property with a septic system to ensure it meets health and environmental standards.
- Asbestos Asbestos was commonly used in building materials until the late 1970s. It can be found in insulation, floor tiles, and roofing materials. Disturbing asbestos can release harmful fibers, so it’s important to have older homes inspected and properly managed.
- Radon Radon is a colorless, odorless radioactive gas that can seep into homes from the ground. It is the second leading cause of lung cancer. Testing for radon is essential, and mitigation systems can be installed if high levels are detected.
- Hazardous Materials Properties may contain hazardous materials such as pesticides, solvents, or industrial chemicals. An environmental assessment can identify these risks and help determine necessary remediation steps
- Drinking Water The quality of drinking water is vital. Ensure the property has safe, clean water by testing for contaminants like lead, bacteria, and nitrates. Properties with private wells should be tested regularly.
- Mold Mold thrives in damp environments and can cause health issues and structural damage. Look for signs of water damage and have a professional inspection if mold is suspected.
- Wetlands Properties near wetlands may have restrictions on development and use. Wetlands provide important ecological benefits but can also pose challenges for construction and property value.
- Electromagnetic Fields (EMFs) EMFs are emitted by power lines, electrical wiring, and wireless devices. While the health effects are still debated, some buyers may be concerned about high EMF levels. Testing can provide peace of mind.
- Smoke and Carbon Monoxide Detectors Ensure the property has functioning smoke and carbon monoxide detectors. These are critical for safety and are often required by law in residential buildings.
- Underground Storage Tanks Underground storage tanks (USTs) can leak and contaminate soil and groundwater. Properties with USTs should be inspected for leaks, and old or unused tanks should be properly removed.
- Urea Formaldehyde Foam Insulation (UFFI) UFFI was used in the 1970s for insulation but was later found to release formaldehyde gas, which can cause health issues. Homes with UFFI should be inspected, and removal may be necessary.
2023 In Review
2023 MA Single Family, Condos, and Muti Family Real Estate Sales
Property type home sales data for Single Family, Condos, and Multi Family homes in all of MA
(not including auctions and Berkshires + Cape Cod multiple listings data).
Market Snapshots
TOTAL SOLD MARKET STATISTICS IN MASSACHUSETTS*
BY TYPE
JAN TO JUN 2023
*excluding Cape Cod & Berkshires
Source: MLS Property Information Network, Inc.
SINGLE FAMILY-CONDOMINIUMS-MULTI FAMILY
SINGLE FAMILY
CONDOMINIUMS
MULTIFAMILIY
LEGEND:
SP = Sale Price, LP = List Price, OP = Original Price
