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

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

MLS PIN has released its 3rd quarter market watch report. It reveals some encouraging news for Bristol County.

Year-to-Year in Bristol County sales prices are UP, the number of homes for sale is DOWN, the months of supply are DOWN, and days on market are UP. It exactly what would be expected. When prices go up it takes longer to find buyers so days on market go up.

The graph above shows that the number of homes for sale has steadily declined over the last 3 years. If you have been in the market to purchase a home over the last few years no doubt you have noticed that there are fewer homes on the market. Fewer homes for sale, plus more closed sales over the last 3 years has resulted in increased sales prices. There was a slight decline in units sold (0.9%) so we will have to watch to see if that trend continues.

Median sales prices in Bristol County are approaching 1st Quarter 2008 levels. Let take a closer look median price and the 1 year % price change for specific zip codes:

ZIP Code Median Sales Price 1-YR Price Change 
 02720 $224,000+7.6% 
 02721 $202,000+8.6% 
 02723 $182,500+4.3% 
 02724 $182,000-7.8% 
 02725 $208,000+4.0% 
 02726 $248,000-5.3% 
 02777 $240,750+5.6% 
 02790 $304,000-2.7% 

Don't see your ZIP Code? Want More? Click Here for the Full Report.

So what does this all mean? Well, if you're thinking of selling the market is looking good. Inventory is DOWN and Prices are UP! And if you are thinking about buying interest rates are near record lows resulting in excellent home affordability. Plus new financing options, like Buy Fall River Now, are making getting into a new home even easier.  
* Graphs and Market Data Provided by MLS PIN 

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 November 29th, 2014 7:33 PM

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