BOSTON (SHNS/WWLP) – Analysts said shifting economic conditions have “rapidly cooled” the Massachusetts housing market.

According to new data from the Massachusetts Association of Realtors, closed single-family home sales in October fell 22 percent compared to October 2021, and closed condo sales last month tumbled 26 percent over the year.

“While the market has cooled and sustained increases in mortgage and interest rates might have an impact on closed sales and even listing prices, there have been no recessionary occurrences in the market thus far,” association president Dawn Ruffini said in a statement on Monday. “A lack of inventory continues to be the greatest problem facing housing in Massachusetts.”

The association said that many homeowners are waiting until market conditions improve to sell their homes. Compared to September, new listings for single-family homes decreased by 18 percent and 28 percent for condominiums.

The median sale price for a single-family home in Massachusetts decreased in that span by more than 4 percent to $547,000 and the median sale price for condos increased by under 1 percent to $484,500, the association reported.

22News spoke with a local relator who said home prices are still up compared to what it was a year ago. He added that he’s seen plenty of buyers still looking for a home, even though interest rates have gone up.

“Recently, I started working with a new buyer and I always ask what prompts you to buy a house right now?… And her answer to me, was my rent just went up $400 a month,” said Steven Laplante of Era M. Connie Laplante Real Estate. He explained, “For what they are renting, it’s cheaper to buy a house even with the higher interest rates.”

Laplante noted that it is hard to predict where the housing market will be by next year. He anticipates that there will be a shift in the market resulting in less “bidding-wars” and full price offers.