The South Coast Real Estate Round-Up

Inventory Nightmare

In the ever-evolving landscape of real estate, there's a question that's been on many minds lately: "Where did all the houses go?" It's a query that strikes at the heart of housing shortages, affordability challenges, and shifting patterns in homeownership. Recently, a new statistic from Redfin has shed light on this phenomenon, revealing that today, the typical homeowner spends an average of 11.9 years in their home, a significant increase from the 6.5 years reported two decades ago. But what's driving this trend, and what does it mean for prospective buyers and sellers?

One key factor contributing to the longer tenure of homeowners is the changing nature of the real estate market. In quarter 4 of 2021, investors purchased a staggering 26.1% of lower-priced homes, up from 24% the year before. This surge in investor activity has had a ripple effect, further reducing opportunities for owner-occupied single-family home buyers. With investors snapping up properties for rental income or resale, the pool of available homes for traditional buyers has diminished, leading to increased competition and higher prices.

This trend has profound implications for both buyers and sellers. For prospective homeowners, especially first-time buyers or those looking to upgrade, the reduced inventory can make finding the right property a daunting task. With fewer options available, buyers may face bidding wars and inflated prices, making homeownership feel increasingly out of reach. On the other hand, for current homeowners considering selling, the scarcity of listings could present a lucrative opportunity. With high demand and limited supply, sellers may find themselves in a favorable position, able to command top dollar for their properties.

However, it's essential to recognize that while these market dynamics may present challenges, they also underscore the importance of strategic planning and informed decision-making. For buyers, working closely with a knowledgeable real estate agent who understands local market trends and can offer guidance on navigating competitive landscapes is crucial. Additionally, exploring alternative housing options such as townhomes, condos, or new construction developments may provide viable alternatives in areas where single-family homes are scarce.

For sellers, timing and pricing are key considerations. While high demand can work in favor of sellers, it's essential to strike the right balance between maximizing profit and attracting qualified buyers. Collaborating with a seasoned real estate professional who can help stage the home effectively, market it to the right audience, and negotiate favorable terms is invaluable in achieving a successful sale.

Ultimately, the phenomenon of homeowners staying in their properties longer and investors exerting greater influence on the market reflects the dynamic nature of real estate. By staying informed, adaptable, and proactive, both buyers and sellers can navigate these challenges and capitalize on opportunities in today's evolving landscape.

While the question of "Where did all the houses go?" may seem perplexing at first glance, a closer examination reveals a complex interplay of factors shaping the current state of homeownership. From shifting market dynamics to increased investor activity, understanding these forces is essential for anyone navigating the real estate landscape. By staying informed, leveraging expert guidance, and approaching transactions with patience and strategy, buyers and sellers alike can navigate this ever-changing terrain with confidence.

Posted by Christopher Terry on February 16th, 2024 6:10 PM

This is your market in a minute for multi-family homes year end 2022 in Fall River MA.

Lack of inventory continues to plague the Fall River multi-family housing market with 2022 seeing a reduction in the number of multi-family home listed for sale by 20% from the previous year further fueling the pricing appreciation.

The average selling price for a multi-family home jumped almost 19% from 2022 to $524,000 with an average price of $157 per square foot.

Fewer listings, coupled with higher interest rates, resulted in the number of closed transactions dropping 26.5%, from 468 in 2021 to 344 in 2022.

Months of supply, although still strongly in the sellers' market jumped 85% to 1.5 months' supply over the previous year.

It's going to be interesting to see how this plays out in 2023 with raising rates and lenders tightening financing coupled with low inventory. 

Of course, all real estate is local, and this is only for Fall River MA, so let me know if you would like to know more about what is happening in your neighborhood, community or town.  And if you like these updates. please subscribe so you can stay "in-the-know".

Our Team


Posted by Christopher Terry on January 18th, 2023 5:17 PM

Update: If you saw this post from earlier in the month and have an interest in what has been going on with the local real estate market then you might find this latest graphic update interesting:

Listing Inventory 2019 vs 2020

What a difference 3 weeks can make!

Inventory has fallen off by another 1000 homes in the state in only 3 weeks! Below is my post from earlier this month. Take a look and if you have thought about selling your home check out the seller section of our site for great information on how to prepare your home for sale, or just give me a call. I'll walk you though the process, from start to finish, all with no obligation! 

I've been thinking about how to best convey what is happening in the real estate market here in Massachusetts and on the South Coast without sounding like I'm begging you to sell your home. So, I thought I'd start with a few graphics.

What a Difference a Year Makes!

Today, there are only 4361 single family homes on the market in all of Massachusetts! 5 years ago, at this time, we had over 11,200.  And inventory is down over 50% from this time last year. In addition, this data tool includes homes that are in a "contingency" status when calculating on market inventory. So, when you factor in that a percentage of the listed inventory is "continent" then far last than 4361 homes are actually available. Until last week, inventory in Massachusetts had not fallen below 5,000 homes since records started being kept.

"That's interesting but what's happening locally?" Well, I'm glad you asked! Let's see.

It's not any better for home buyer's looking throughout Bristol County with inventory down over 57% from last year. 

"What about Fall River?" Thanks for asking! Let's see...

You have to feel for these families trying to find a place to call home when in the entire city there are only 37 homes to consider. That's homes, some of which are "contingent", at all prices points! Challenging to say the least, especially when you are on a budget!

"Is there any good news if you are a home buyer?" Yes, yes there is! 30 year mortgage interest rates hit a new record low last week! When borrowing money at these incredibly low rates, even when factoring in the home price increases, it's still can be cheaper to buy a home this year than it was a year ago!

So, I'm not begging you to list your home for sale.  But the market is starving for inventory, so if you have a property that you have considered selling I can't imagine a better market than now! 

Check out the seller section of our site for great information on how to prepare your home for sale, or just give me a call. I'll walk you though the process, from start to finish, all with no obligation! 


 Christopher Terry
 EZ Home Search Real Estate
 www.ezhomesearch.net
 chris@ezhomesearch.net
 508-646-4777

P.S. I know there is a tendency to set this aside, but don't wait! The unique market conditions that we are seeing won't last forever! Call 508-646-4777 or email me today! 

Posted by Christopher Terry on December 30th, 2020 10:40 AM

What is the number 1 question both buyers and sellers are asking right now? I bet you know what it is...

With Covid-19 running rampant, work stoppage and skyrocketing unemployment, and with mortgage lending getting tighter and tighter everyone wants to know what is going to happen to the real estate market. But what they are really asking is what will happen to the price of homes.

I wish I could answer that question, but I can tell you that based on the amount of available inventory I would say that I don't believe it will go down, at least not in any significant way. Take a look at this chart of Inventory of Single Family Homes in Bristol County spanning the last 5 years:

Notice the number of listing units. One of the biggest issues we have had over the last few years is lack of inventory. Now look at the inventory level for 2020. It is down 25% from this time last year and down 45% from 5 years ago. 

Now look at the months of supply. A stable market, a market in balance (equal number of buyers and sellers) is usually indicated when there is a 6 month supply of homes available. We are currently at 1.7 months of supply. 

Now, let's take a look at this chart for Multi-Family homes in Bristol County:

 

See a trend here? Very similar statistics as the single family chart. Now let's look at condominiums:

Again, similar story. 

There is no doubt that the effects of the corona virus will have a chilling effect on the economy and the number of home buyers in the market place but with so little inventory the likelihood of any long term and significant downward pressure on pricing is low. 

However, if there is one constant in real estate it's change! I do expect that once we are on the other side of this, and businesses are able to re-open and we all start to become more accustom to this new normal that there will be a flood of homes hitting the market. So when that happens we will have to see how the market responds.

Stay Safe,

 

Christopher Terry
EZ Home Search Real Estate
508-646-4777
chris@ezhomesearch.net

Posted by Christopher Terry on April 19th, 2020 2:29 PM

The 2008 crash was caused by subprime loans and speculators. Together, they drove prices to unsustainable levels. It was a perfect storm of events that had a devastating impact. 

But if you think we’re headed for the same rough waters today — think again. 

Today’s housing market is much different than it was in 2008 — and therefore more stable today. 

There are key differences in this market then 2008. Don’t believe me?  Check out this article that shows 8 Reasons the Coronavirus Won’t Crash the Housing Market. 

Buying and selling real estate is still a good idea right now — if you have the right agent on your side. 

Contact me to find out how we can guide you through these uncharted waters.

 

Christopher Terry
EZ Home Search Real Estate
508-646-4777
chris@ezhomesearch.net

Posted by Christopher Terry on March 26th, 2020 12:45 PM

One Minute Housing Market
Take one minute to update yourself on what is happening in the local housing world.

Welcome to the most current Housing Trends eNewsletter. This eNewsletter is specially designed for you, with national and local housing information that you may find useful whether you’re in the market for a home, thinking about selling your home, or just interested in homeowner issues in general. 

Please click on this link to view the Housing Trends February 2017 Newsletter http://ezhomesearch.housingtrendsenewsletter.com  

The Housing Trends eNewsletter contains the latest information from the National Association of REALTORS®, the U.S. Census Bureau, Realtor.org reports and other sources. 

Housing Trends eNewsletter is filled with local and national real estate sales and price activity provided by MLSs and the National Association of Realtors, U.S. Census Bureau key market indicators, consumer videos, blogs, real estate glossary, mortgage rates and calculators, consumer articles, and REALTOR.com local community reports. 

If you are interested in determining the value of your home, click the “Home Evaluator” link for a free evaluation report: 

http://www.ezhomesearch.net/FreeHomeValuation

Sound decisions can only be made with accurate and reliable information, and I am happy to be a trusted resource for you. Thank you for the opportunity to provide you with this monthly eNewsletter, and I look forward to answering any questions you may have and to the opportunity to be your REALTOR® in the future. 

Sincerely yours, 

Christopher Terry

Broker/Owner/Founder
E Z Home Search Real Estate

Christopher Terry is a licensed real estate broker in Ma and RI, has completed the Accredited Buyer Representative Certification, is a graduate of the Certified Distressed Property Institute, holds the prestigious CDPE designation, is a 4-Time winner of the Master Sales Society's 5/50 Award and is the founder of EZ Home Search Real Estate Inc. 
Posted by Christopher Terry on March 14th, 2017 11:14 AM

One Minute Housing Market
Take one minute to update yourself on what is happening in the local housing world.

Welcome to the most current Housing Trends eNewsletter. This eNewsletter is specially designed for you, with national and local housing information that you may find useful whether you’re in the market for a home, thinking about selling your home, or just interested in homeowner issues in general. 

Please click on this link to view the Housing Trends January 2017 Newsletter http://ezhomesearch.housingtrendsenewsletter.com 

The Housing Trends eNewsletter contains the latest information from the National Association of REALTORS®, the U.S. Census Bureau, Realtor.org reports and other sources. 

Housing Trends eNewsletter is filled with local and national real estate sales and price activity provided by MLSs and the National Association of Realtors, U.S. Census Bureau key market indicators, consumer videos, blogs, real estate glossary, mortgage rates and calculators, consumer articles, and REALTOR.com local community reports. 

If you are interested in determining the value of your home, click the “Home Evaluator” link for a free evaluation report: 

http://www.ezhomesearch.net/FreeHomeValuation

Sound decisions can only be made with accurate and reliable information, and I am happy to be a trusted resource for you. Thank you for the opportunity to provide you with this monthly eNewsletter, and I look forward to answering any questions you may have and to the opportunity to be your REALTOR® in the future. 

Sincerely yours, 

Christopher Terry

Broker/Owner/Founder
E Z Home Search Real Estate

Christopher Terry is a licensed real estate broker in Ma and RI, has completed the Accredited Buyer Representative Certification, is a graduate of the Certified Distressed Property Institute, holds the prestigious CDPE designation, is a 4-Time winner of the Master Sales Society's 5/50 Award and is the founder of EZ Home Search Real Estate Inc. 
Posted by Christopher Terry on February 9th, 2017 10:16 AM

Every year the housing market changes. In the last decade we have seen very high highs, and very low lows. But it is predicted that the 2017 housing market will even out, creating a steady amount of inventory and demand in the upcoming year. Below are some of the specifics that we can expect in 2017.

Market Activity

We discussed the economy’s effect on interest rates in great depth in a previous post (Click Here to See Post) of ours, but here’s a small recap if you missed it. Immediately after the election results came in, mortgage rates increased. They continued on an upward trend through the end of 2016, and with the Federal Reserve’s December announcement to increase interest rates, we can expect the mortgage rates to continue to rise. Typically, when rates begin to go up, buyers come out earlier in the selling season to try to lock in lower rates, so that is something agents can expect this year.

Inventory

By 2017, sellers have finally regained enough equity in their homes to feel comfortable putting them on the market, the feeling is that this will mean that there will be more homes on the market than we have seen in recent years. Often, when mortgage rates go up, price appreciation goes down so that the overall cost of buying a home isn’t absurdly high. Therefore we often see that the homeowners who are thinking they will sell in the next few years consider selling sooner rather than later because they don’t want to risk selling their home for less in the future than they can sell it now. Thus, early 2017 could see higher inventory and activity than we usually see in the winter months.

Financing

Though the rates are increasing, credit is not as hard to get as it was directly after the recession. The Federal Housing Finance Agency even announced that it will increase lending limits for 2017. The increase of the conforming loan limits is the first time these have changed since 2006. The limit will rise to $424,100 from $417,000. Some lenders are also offering new mortgage programs that call for a modest down payment and don’t require buyers to purchase an FHA loan.  Typically, lenders require credit scores of at least 620 to qualify. We’re also seeing more products form municipal housing agencies that assist many first-time buyers. All of this is in addition to Fannie Mae and Freddie Mac programs that allow for as little as a 3% down-payment for first-time home buyers with loan amounts below the conforming threshold.

Bottom Line

Overall, there is an optimism surrounding the 2017 housing market predictions, and the hopes are that we will see a thriving market throughout this new year.

Christopher Terry is a licensed real estate broker in Ma and RI, has completed the Accredited Buyer Representative Certification, is a graduate of the Certified Distressed Property Institute, holds the prestigious CDPE designation, is a 4-Time winner of the Master Sales Society's 5/50 Award and is the founder of EZ Home Search Real Estate Inc. 

Posted by Christopher Terry on February 5th, 2017 8:12 AM
Welcome to the most current Housing Trends eNewsletter. This eNewsletter is specially designed for you, with national and local housing information that you may find useful whether you’re in the market for a home, thinking about selling your home, or just interested in homeowner issues in general. 

Please click on this link to view the Housing Trends December 2016 Newsletter http://ezhomesearch.housingtrendsenewsletter.com 

The Housing Trends eNewsletter contains the latest information from the National Association of REALTORS®, the U.S. Census Bureau, Realtor.org reports and other sources. 

Housing Trends eNewsletter is filled with local and national real estate sales and price activity provided by MLSs and the National Association of Realtors, U.S. Census Bureau key market indicators, consumer videos, blogs, real estate glossary, mortgage rates and calculators, consumer articles, and REALTOR.com local community reports. 

If you are interested in determining the value of your home, click the “Home Evaluator” link for a free evaluation report: 

http://www.ezhomesearch.net/FreeHomeValuation

Sound decisions can only be made with accurate and reliable information, and I am happy to be a trusted resource for you. Thank you for the opportunity to provide you with this monthly eNewsletter, and I look forward to answering any questions you may have and to the opportunity to be your REALTOR® in the future. 

Sincerely yours, 

Christopher Terry
E Z Home Search Real Estate
798 Stafford Rd Fall River MA 02721 508-646-4777 105 | chris@ezhomesearch.net 



Posted by Christopher Terry on January 5th, 2017 7:13 PM
Hot of the Press! The Massachusetts Association of Realtors® (MAR) releases November's Year-Over-Year single family and condominium statistics and it looks like all of the election news didn't stop home buyers from being in the market pushing the state wide single family median sales prices to the highest level for November since 2004.

Meanwhile inventory of detached single family homes continued its downward trend reaching it's lowest levels since January 2004.

Median prices and sales for condominiums both rose for the month.

November Closed Sales:
Single Family  November 2016 November 2015 % Change 
Sales 4,7843,990 +19.9%
Median $ $365,000$344,500+6.0%
Closed sales have been flat or up 10 of the last 12 months. Median prices have been flat or up 11 of the last 12 months.

Condominium  November 2016 November 2015 % Change
Sales 1,723 1,505+14.5%
Median $ $339,900$335,000+1.5%
Closed sales have been up for 10 of the last 12 months. Median prices have been up or flat 11 out of the last 12 months.

Inventory and Days on Market:
Single Family November 2016 November 2015 % Change 
 Inventory14,30021,862-34.6% 
 Months of Supply 2.94.9 -40.8% 
 Days on Market75 95 -21.1% 
 New Listings4,090 4,179 -2.1 
58 straight months of year-over-year inventory decreases. New listings added to the market are down for the eighth straight month.

CondominiumNovember 2016 November 2015 % Change 
 Inventory3,887 5,592 -30.5% 
 Months of Supply 2.1 3.2 -34.4% 
 Days of Market59 73 -19.2% 
 New Listings1,5681,530 +2.5% 
Inventory has been down 11 out of the last 12 months. New listings added to the market has been up for the fifth time in 12 months.

The Massachusetts Association of Realtors® is a professional trade organization with more than 24,000 members and was organized in 1924. The term Realtor® is registered as the exclusive designation of members of the National Association of Realtors® who subscribe to a strict code of ethics and enjoy continuing education programs
Posted by Christopher Terry on January 3rd, 2017 5:38 PM

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