Broker Associate
508-826-7661
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www.lisashawsells.com
The market has already begun to Spring into action and as of mid-April, things are both hot and cold. The number of homes that went on deposit last week is the lowest number we’ve seen in the past 20 years as well as a 53% decrease in the YOY number of homes that went under agreement the same week last year.
Not only is this significant but it could also indicate a concern that there may be a lack of buyer demand. However, if you take a closer look, inventory is still extremely low and that’s part of the cause of this unusual market activity. The percentage of listings that went under agreement was 32.7% for last week. And yes while this is low compared to the previous 2 years, it is actually a very solid number for mid-April. As a comparison to the sellers’ market, we were experiencing pre-pandemic during 2017-2019 the percentage of homes that went under agreement was in the mid 20%. So… looking at the big picture, the statistics imply this is going to be a very strong Spring market. The buyer demand is still at a good level and the lack of inventory is more to blame for the low number of homes that went under agreement last week.
The solution is we need more homes, more homes built and more homeowners to sell. One critical factor that has affected inventory is the fact that by this time more Baby Boomers were expected to be selling and downsizing or headed to warmer weather areas, however it’s a catch 22, those baby Boomers are not only sitting on 2-3% or no mortgages they also don’t have inventory to choose from. The MBTA Communities Act is one law that’s been put in place to lessen the low inventory impact on the market. We need more programs and towns should be looking at what they have for affordable housing and working with local builders to develop wherever they can.
Another factor coming into play is that bank assets have been down for 3 consecutive quarters and are now lower than they’ve seen in more than 2 years. This will likely have an affect on interest rates and affordable loans. For now though rates seem to have settled and buyers are slowly gaining confidence back. In California, a new $300 billion special lending program the government made available following the failures of Silicone valley and Signature Bank has since helped slow the outflow.
The bottom line is still if you’re thinking of selling, you have not missed the “sellers’ market” it is still here and looks like it will be for most of this Spring and Summer at the least. Talk to a Realtor, your financial planner and an accountant and get a good 5-year plan in place, you may be surprised what that looks like and how soon it would suggest selling.
As always, If you’re thinking of buying or selling it’s best to get the advice of a professional realtor with the right team and having experts work on your behalf is absolutely in your best interest. For more market updates, feel free to reach out: email- [email protected] Instagram @lisashawsells or call me 508 826-7661
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