Hey everyone! Welcome to our monthly market update. We're taking a look at the north of Boston real estate market specifically Middlesex and Essex counties, and comparing May of 2022 to May of 2021. So the total number of active properties dropped about 8.5%. The number of sold properties dropped as well by about 2.5%. Days on market dropped about 21% and median sale price continues to be on the rise and came up 12.5%. So there's a lot of confusion in the marketplace today. Many people think that the market is favoring buyers, and other people think that it's still a strong seller's market. Which one is it? Well, the answer is it's both! We've been so used to an insane seller's market many of us forget what a typical seller's market looks like. The numbers are still great! Inventory levels are low and demand remains high. Although prices will most likely continue to rise, we've never seen the leverage that sellers have now. Buyers are waiving inspections and allowing the sellers to not only pick their closing date but many times giving sellers time in the house as a rent back free of charge. We may see some of that leverage start to diminish in the near future. If you're considering selling your home it is still a great time and sellers still have leverage! If you are considering making a move in or out of the suburbs north of Boston give us a call at 617-275-3379.
Buyers who bought last year are grateful that they are not purchasing this year, however we predict that buyers who buy this year will be much better off than waiting until next year. “The average single-family home in our market area costs 53% more today than it did a year ago due to higher interest rates and appreciation. Last year, a 30-year fixed rate with zero points for buyers with excellent credit was running 2.875%. Today, interest rates are circling 5.5%,” said Linda O’Koniewski, CEO of Leading Edge. “And buyers don’t want to hear that interest rates were 18% in 1980. Home prices were under $100,000. Today’s buyers must square with today’s reality if they want to buy a home before it gets even more expensive. Despite inflation, impending recession, supply chain issues, and fuel price hikes, locally we have an extreme housing shortage which will keep prices high for the foreseeable future.”
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