Curious About The Current State of the Real Estate Market???

Are you wondering what the current state of the residential real estate market is in Greater Boston given rising interest rates and what it means for you??

The following table shows in detail what effect rates have had on the market.

While this table depicts the market for single family homes in Middlesex County it is indicative of the Greater Boston market in general. Some of the most important points here are the fact that “Listing Inventory” has increased by an incredible 45.47% year over year. Keep in mind that one year ago inventory was at historic lows. As such, this equates to a market that is now coming back down to earth and it was much needed – particularly for buyers!

Interestingly, the average list price of listed homes has increased by 21.64% year over year. It is important to remember that these are averages so if a number of larger/pricier homes sell it can skew the results somewhat. Generally, as inventory increases still further, and homes stay on the market longer the average list price should moderate somewhat.

Also of interest is that the days to offer / days on the market remains stable year over year. This means that there is still demand. An absorption rate of 82.55% indicates that it is still a sellers’ market. Things are swinging toward a more normalized market which is becoming more favorable for buyers however.

There are still multiple offer situations out there depending on the market segment particularly if homes are desirable and priced right. There are fewer multiple offer situations however. There will also be seasonal fluctuations and, barring any unforeseen circumstances things should pick up after the holidays.

What does this mean for buyers?? These changes mean that it is a great time to buy! There are now more opportunities to buy without massive bidding wars and houses will increasingly be on the market for longer periods of time. These factors equate to buying opportunities. Granted interest rates are higher right now but, historically, they are still low. It was only in the year 2000 that rates were 8% and in 1981 rates were a staggering 18.5%!! That being said, if/when rates go down a buyer can always refinance. Until then a buyer can enjoy the benefits of writing off mortgage interest on their taxes (and interest is always front loaded so you pay more interest up front and get more equity as time passes). This is generally equivalent to a raise in pay!

What does this mean for sellers?? As previously mentioned, this is still a sellers’ market! It is just becoming more normalized. Prices continue to be strong and the number of days on market continues to be low. For those looking to down size or "cash out" this can be a perfect time!

If you have questions regarding the market, the value of your home, or any buyer/seller related questions I would love to hear from you. You can contact me through the “Contact” menu pick on my website or by reaching out directly at mmahoneysr@rtnrealty.com. Please feel free to text/call me as well at 617-306-2190. As I get general questions I will post them in this blog along with my answers! Thanks and keep the questions coming.

HAPPY HOUSE HUNTING / HAPPY HOME SELLING!!!