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:
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 email@example.com 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!
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.
EZ Home Search Real Estate
Out with the old and in with the new. New Years brings a fresh start to many aspects of our lives, but some of those new beginnings might not be for the best. In December of 2016, The Federal Reserve increased interest on mortgage rates by 0.25%. The 30-year-fixed mortgage rates also already increased by 0.5% between the presidential election and the December Fed meeting, and will likely continue to climb well into 2017.
Though a 0.25% increase doesn’t sound like much, it can cost homeowners thousands of dollars more over time. For example, homeowners with a 30-year mortgage of $300,000 with a 4% rate will have monthly mortgage payments of 1,578. If that rate goes up by as a little as 0.25% the monthly payments will be $41 dollars higher; a total of $14,760 over the course of the 30-year loan.
Buyers shouldn’t let small increases scare them from buying a home. Here are some precautions homebuyers can take to save money in the long run.
First-time homebuyers might want to consider reducing their target price as the mortgage rates inch up. In order to ensure long-term affordability, homebuyers might think about looking at smaller homes or home with fewer wish-list traits. Another option is delaying the home buying process, and taking the time to save up for a more expensive property.
First-time buyers should also try improving their credit score, because the better the score, the lower the interest rate will be. They should also check their credit reports for errors, try to reduce their debt, and save up as much as possible to put on their down payment.
Current homeowners who are looking to move, might be a bit shocked to see the difference in monthly costs between their current mortgage and their new one. There are things that can be done though to minimize the financial impact of a move. Doing your research on the cost of living in different communities can help, as well as starting the process of moving sooner rather than later.
If you are currently living in the home you want to live in for a while, look into refinancing to a fixed-mortgage rate before the rates increase too much.
It is impossible to predict what mortgage rates will look like throughout 2017, but by doing your research and covering all bases, you can save yourself thousands of dollars in the long run. 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.