Judy Boyle, Realtor®, RE/MAX
Happy New Year! With the holidays behind us, we in the real estate field are turning our attention to the impending “Spring Market” which is quickly approaching despite what Mother Nature might say.
We are meeting with homeowners to discuss pricing, marketing strategies and home preparation. We are meeting with buyers to discuss buying power, preferred communities and desired home amenities. What we are not doing is telling sellers that there is stiff competition. We are also not telling our buyers that there are plenty of homes to choose from. What we are doing is hoping for a healthy balance of buyers and inventory so buyers and sellers alike are happy.
In the chart below, I have illustrated the current state of the real estate market in the area. What is interesting to note is that the units that are “On Market” have been sitting there for an average of 198 days. As we all know, these properties are either overpriced or have some material defect that prevents them from selling. Conversely, the homes that are pending were on the market for an average of 65 days.
As I have stated in previous articles, I am a real estate junkie; I should be if I claim to be an expert in my field. I spend countless hours researching local and global trends and consult the industry experts to corroborate my findings.
The common theme for this upcoming Spring Market is neither rising home values nor interest rates. It is lack of inventory. Below I quote three industry experts talking about the same issue.
Frank Nothaft, chief economist for CoreLogic: “Many markets have experienced a low inventory of homes for sale along with strong buyer demand which is sustaining upward pressure on home prices. These conditions are likely to persist as we enter 2016.”
Doug Duncan, chief economist at Fannie Mae: “Several factors point to constrained housing affordability in 2016, particularly for first‐time buyers, including slow single‐family supply response and limited inventory of starter homes on the market.
And Lawrence Yun, chief economist at the National Association of Realtors: “Sparse inventory and affordability issues continue to impede a large pool of buyers’ ability to buy, which is holding back sales.
What all this means for sellers is you can expect a quick sale this spring if your home is well-prepared and priced correctly. And for buyers, get those preapprovals; make sure your downpayment is readily accessible, and be ready to fight for your dream home.
Boyle lives in Northborough where she is also a chapter leader of the Neighbor Brigade, a local nonprofit that assists families in times of crisis. She has been a real estate agent since 2003 and consistently wins awards and accolades for excellence in customer service and sales volume.
Her mission is to empower her clients to make smarter decisions through data-driven insights and local market knowledge. She invites you to follow her on Facebook at www.facebook.com/judyboylecares, call or email her for the spring 2016 Home Buyer and/or Seller Guides, or just to talk Real Estate.
Town # on Market * # Pending Sales Average List Price
Grafton 66 26 $455,000
Hudson 22 21 $375,000
Marlborough 46 35 $413,000
Northborough 27 16 $576,000
Shrewsbury 64 37 $586,000
Southborough 26 17 $661,000
Westborough 32 27 $596,000