Changes in the dynamics of Massachusetts’ housing market could be putting homebuyers much closer to the driver’s seat of transactions than they’ve been in a while. Photo by Solovyova | iStock
In the absence of trustworthy, up-to-date information, real estate decisions are increasingly being driven by uncertainty and doubt. But it doesn’t have to be that way.
If you’re thinking about buying or selling your home, here is what’s really happening with home prices, mortgage rates, housing supply and more.
Home sales surged in 2020 and 2021 as a result of historically low mortgage rates. Since then, home sales have declined and sellers have been hesitant to put their homes on the market due to high interest rates.
The uncertainty and volatility have some feeling doubtful about a major market rebound this homebuying season. Nevertheless, we are optimistic that buyers and sellers will be more active now that spring – traditionally a time when housing activity peaks – has arrived.
A More Balanced Market Awaits
At this time of year, inventory is showing slight signs of improvement. Median home prices tend to rise due to increased seasonal demand. Higher-priced homes are usually listed and we see more competition among buyers as well as a spike in migration. Buyers will be motivated by the life transitions that have always triggered home purchases, like graduations, new jobs, marriages and births, and less by deals of a lifetime on mortgage rates. And, most importantly, the number of active listings for condominiums and single-family homes is up year-over-year in Greater Boston, the Greater Boston Association of Realtors reported in March.
Larry Rideout
There’s no denying that the cost of buying a house has risen, but if you dig into the data, you’ll find that many homebuyers might actually be in the driver’s seat. At this time last year, sellers were calling all the shots and buyers were launching bidding wars, waiving contingencies and paying for homes in cash. But now, the shoe is on the other foot, and more sellers are accepting buyer-friendly terms frequently related to home inspections, financing, or appraisals. Now, as a buyer, you can slow down, schedule that home inspection and make a strong, well-informed offer.
Sellers are in a good position, too. They won’t see the 10 all-cash, non-contingent offers they saw this time last year, but can now consider all aspects of a contract and take the time to work out mutually beneficial arrangements. Sellers who price and market their home competitively this spring shouldn’t have a problem finding a buyer.
Colleen Barry
Experience, Knowledge Key
Over the past year, the Massachusetts real estate market has truly seen it all, but so have our associates. In markets that are hot or cool, one thing that stays steady is the expertise of our agents. They have had to weather several storms in recent years, but have ridden the ups and downs to achieve tremendous results for their clients.
As advisors, we strive to provide buyers and sellers with the information needed to interpret market data and make confident decisions. How we counsel you today could change week by week as we follow macro and micro market indicators such as interest rates, showing counts, market time, list to sale price ratio and even the stock market.
Nicole Rideout Hartwick
A trusted expert is your best resource to understand the market’s facts – not the hype, conjecture or media headlines – and help you prepare to make a move when the right time comes along. Your Realtor should be able to help you overcome the challenges of the market and take advantage of the lack of competition. After all, making a move is a life-changing milestone. It should be something you feel ready for and excited about. And that’s where an experienced agent with a trusted reputation comes in.
Change in real estate is constant, and while these changes can be stressful, they create changing needs and new opportunities. No matter where 2023 takes us, we’re ready.
Larry Rideout is chairman and co-owner, Colleen Barry is CEO and Nicole Rideout Hartwick is chief strategy officer at Gibson Sotheby’s International Realty.
