The first quarter is in the books, and market is Not slowing down, even with rates rising. Single family homes continue to be in high demand and from what I’m seeing with clients it is Not uncommon for homes to sell $100k-$200k and sometimes $500k over asking price with anywhere from 10-25 offers on a home. Take these numbers with a slight grain of salt as they still include homes that went under agreement in Nov/Dec and closing in Jan/Feb and the market was much different during the Holiday times.
As a point of reference on 4/2/2022 we had 2,746 single family homes for sale vs on 4/4/2020 (tracking inventory on Saturday mornings) there were 7,053 single family homes for sale. The last “normal” year we had 9,594 single family homes for sale on 4/6/2019. All this to say we are operating at 28.6% of normal inventory levels.
However! Peeling back the onion a little more, the numbers are slightly skewed because of the incredibly high absorption rate. Basically, houses don’t sit on the market anymore. They come on, and they usually sell that weekend, which means the on-market inventory remains constantly low. This is a combination of low supply, buyers shifting their focus on single family’s vs condos when Covid hit, and the large amount of total buyers in the market for a home.
Let’s not forget about Condos! 2021 was an unusual year where there was a large supply of condos on the market, and buyers had a little negotiating power. Not anymore…the city is more than back! Most units are selling at or above asking, while new construction condo units are being reserved way before they are completed. Using the same dates as above, we are at 1,924 condos for sale as of 4/2/2022, compared to 3,541 on 4/6/2019. Operating at 54.3% capacity of the last “normal” year. I am also seeing a similar trend where condos just aren’t sitting on the market, and condo buildings still in development hitting 50% reservation rates within the first month of hitting the market.
There is good news though for buyers! Easter is always a quiet week, and then the inventory really begins to increase. As the year moves, the imbalance between the amount of sellers and the amount of buyers slowly narrows. If you’ve put in offers unsuccessfully, stay patient! The homes that listed Jan-March are now the comps we can use when making offers, instead of sometimes bidding blind.
Sellers-it goes without saying, right now is an incredible time in history to sell your property. For the majority of homes the question is not will it sell, but how much will it sell for, and how smooth and seamless will the transaction be. The biggest factors in getting top dollar for your home are Marketing + Pricing. The idea is to put in a boatload of work on the front end to have your home looking its best, get as much exposure for the property as possible, and the end result generating an incredible offer.
Thank you for taking the time to read this (if you made it this far)! If you would like a more detail report on your town/Boston neighborhood, or have specific questions please send me an email at [email protected].