Massachusetts Real Estate
The worst seems to be over for the Massachusetts housing market and latest data hints at the possibility of a slight rebound despite this state losing hard workers and businesses to other business friendly states. Median home prices are rising and interest rates are still low while inventory is at an eight-year low. It certainly is a lot better than what is going on in Cypress and southern Europe!
More Buyers than Sellers
According to the Massachusetts Association of Realtors, the sale of single family homes in January was up by 13.7 percent from a year ago. This is the 19th consecutive month of year-over-year increases. Furthermore, there are also signs of a seller’s market settling in. Every time a house comes up on the market, there are dozens of interested buyers turning up at the open house—something that has not been seen over the past four to five years. So, what exactly is in store for the housing market in the state over the next few months?
Emerging Seller’s Market
The low inventory and high demand for homes is also pushing up prices quicker than estimated. There is more demand now for properties than seen a few years ago. The lack of supply is expected to ease as summer approaches since this is considered the peak season for buying and selling homes. Maria Gomez brings a unique perspective working in the lease to own housing market. She posits “Sellers who have been sitting on the fence are likely to cross over once they realize that they are likely to get their asking price after waiting all these years.” The lack of inventory coupled with consumer confidence is leading builders to break ground for new projects. This is in stark contrast to a year ago when such a thought was far from their minds.
Realtors Turn Proactive
On the flip side, the lack of adequate homes in the market can prove detrimental to the state’s economy. According to the Warren Group, a Boston-based company, that monitors local real estate trends, the housing market revival started statewide in 2012 and picked up momentum along the way. However, the number of homes on sale in January was 27.3 percent lower than it was a year ago and is the steepest fall in a decade. This has led to realtors coming up with innovative ways to convince sellers to put their homes on the market. The current supply of homes is enough to last less than five months while six months is considered normal by market standards.
Foreclosures Hard to Come By
Some analysts say that the increased demand might be because many home buyers are not locals or due to investors looking for salient and/or awesome deals before the market heats up a little more. One reason homeowners are thinking twice before putting their property on the market is because they don’t have anything desirable lined up to buy and this turns it into a vicious circle. Foreclosures in the state have also come down by a whopping 63 percent. This has resulted in fewer distress sales and short sales which does nothing to help a shrinking housing inventory.
Different Vantage Points
With the home selling season fast approaching, there is hope that more sellers will venture out and preempt any bidding wars that might be in the offing. But the current sellers are happy with the status quo! The possibility of interest rate hikes later this year is also likely to factor in when homeowners make a decision on whether to sell or not. This is unlikely because the job market is still bleak and many experts say America’s economy may be trending south so interest rates may just remain firm for the foreseeable future.
The take home message here is that if you have been thinking of selling your home there may be no better time than the present! If you are in the Metrowest Massachusetts area and are considering selling your place, feel free to browse the RE/MAX Executive Realty website that is designed to provide home seller’s maximum online exposure.
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