The Lamacchia Monthly Housing Report highlights home sale statistics, average sales prices, the number of homes listed and pending as well as price changes for single-families, condos, and multi-family homes in Massachusetts. For New Hampshire it presents home sale statistics and average sales prices. These factors, when compared year over year, are all indicators for predicting future trends in the market.
Highlights
- At the beginning of the pandemic, the Federal Reserve intervened and took measures to avoid a major economic fallout. Today, we are seeing how those measures rapidly sped up the economy, particularly in the housing market.
- Homeowners, buyers and sellers are all wondering when the market will change and we break down how it already has in our recent blog and market update video.
- Evidence of a changing market is most apparent in mortgage rates which continue to remain above 5%, even creeping up past 5.5% in some instances. Throughout the pandemic, rates remained historically and artificially low. Now, the increased rates are meant to slow the economy and spending down by diminishing buying power.
- Increased inflation also diminishes consumer buying power as now not only is their mortgage payment increasing, but so is their other debt obligations and overall, their disposable income now affords them less.
- With buying power reduced, the market will see fewer buyers and therefore a reprieve from competition on homes, a welcome turn of events for buyers. However, this lessening in demand does not translate to ‘cheaper’ housing. It may take time to see price appreciation slow given historically low available inventory and homes listed are still down year over year. Additionally, nationally we have seen an increase in household income, meaning that people still have more money to spend on housing than they did previously. This did and still contributes to the bidding wars we have seen in the market over the past several months.
- Buyers, there is a cost to waiting! Rates are expected to continue their rise throughout the year, so locking in a rate now will ultimately be beneficial. Make sure to get reapproved at new rates and have a conversation with your lender to ensure you are informed and prepared in this market. Sellers, be cognizant of the approval dates from potential buyers.
- Even with a slight lessening in demand, potential sellers are still afraid their homes will sell too quickly and they won’t have anywhere to go. However, there are ways to be prepared and informed so that you feel confident putting your home on the market.
Massachusetts Home Sales Down 14.5%
Sales are down 14.5 percent year over year with April 2022 at 6,662 over 7,788 last April. Sales are down across all categories.
- Single families: 4,517 (2021) | 3,862 (2022)
- Condominiums: 2,530 (2021) | 2,149 (2022)
- Multi-families: 741 (2021) | 651 (2022)
Average prices have continued their rise with another year-over-year increase of 10.8%, now at $614,605. Prices increased in every category.
- Single families: $626,130 (2021) | $675,143 (2022)
- Condominiums: $423,184 (2021) | $497,965 (2022)
- Multi-families: $594,753 (2021) | $655,429 (2022)
Homes Listed for Sale
There were 13.5% fewer listings this year compared to last April 2021 which illustrates how the beginning of this year’s market continues to be very competitive for buyers as sellers remain hesitant to list.
- 2022: 9,375
- 2021: 10,836
- 2020: 5,683
Pending Home Sales:
The number of homes placed under contract is down by 12.1% when compared to April 2021. This indicates that sales next month may also be down, especially now with rates on the rise, as contracts accepted is correlated to future closed sales.
- 2022: 8,207
- 2021: 9,335
- 2020: 5,150
Price Changes
Price changes decreased by 17.5% year over year. Sellers are still able to name their price relatively speaking. If you are a seller who hasn’t been able to sell within a few weeks and it is being marketed properly, the price is the first thing to consider adjusting especially now that rates are rising and affordability is being reduced for buyers
- 2022: 456
- 2021: 553
- 2020: 302
New Hampshire Home Sales Down 18.6%
Highlights
- The housing market and economy have started to change, and everyone is feeling the effects. What does this mean for homeowners, buyers and sellers? We explain the changes further and give our predictions in our most recent blog
- Mortgage rates have rested over 5% the last several weeks which diminishes buying power and will start to lessen frenzied buyer demand. Buyers should make sure their preapprovals are up to date!
- Lessening of demand does not translate to cheaper housing as inventory remains historically low in addition to listings being down year over year. This will keep prices high for the time being despite a lessening of buyer demand with increased rates.
- Sellers who are thinking about entering the market should act soon. Don’t be a “want-to-be-seller” this year, gather the facts and prepare your home to list!
Single family and condo home sales have decreased, but multi-family home sales have increased when compared to April 2021.
- Single families: 1,185 (2021) | 947 (2022)
- Condominiums: 436 (2021) | 349 (2022)
- Multi-families: 104 (2021) | 109 (2022)
Prices overall have continued to increase, now up 15.3% to $474,115 compared to April 2021. Prices increased in every category.
- Single families: $445,011 (2021) | $515,616 (2022)
- Condominiums: $330,578 (2021) | $377,268 (2022)
- Multi-families: $361,893 (2021) | $423,635 (2022)
As you can see the market is trying to catch up to where it would have been had COVID not put a massive wrench in the works, but it’s not quite there yet.
Data provided by Warren Group & MLS PIN for MA, and by NEREN for NH then compared to the prior year.