The South Coast Real Estate Round-Up

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

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

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.

Single Family	November 2016	November 2015	% Change
Sales	4,784	3,990	+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
Inventory	14,300	21,862	-34.6%
Months of Supply	2.9	4.9	-40.8%
Days on Market	75	95	-21.1%
New Listings	4,090	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.

Condominium	November 2016	November 2015	% Change
Inventory	3,887	5,592	-30.5%
Months of Supply	2.1	3.2	-34.4%
Days of Market	59	73	-19.2%
New Listings	1,568	1,530	+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.