The Lamacchia Housing Report presents overall home sale statistics and highlights the average sale prices for single families, condominiums, and multi-family homes in Massachusetts and Southern New Hampshire for May 2019 compared to May 2018. It also looks at other metrics in Massachusetts like Homes Listed for Sale, Homes Pending, and Price Adjustments made to active listings, as they are often the best indicators for predicting future trends in the market.
Massachusetts May Home Sales Up 6.14%
Massachusetts home sales and prices increased in all three categories across the board in the month of May on an average of about 6%. There were 161 more sales year over year overall and prices increased by $26,288.
Homes Listed for Sale:
May 2018 had 163 more homes listed than May of this year, which is equal to a 1.2% decline in homes placed on the market year over year.
Pending Home Sales:
There were 216 fewer homes that went under agreement in May of 2019 compared to May 2018 – about a 2% decrease. This could be a bit of a hint that sellers still have their homes priced for a winter market, where demand was high and inventory wasn’t. Now that the market has swung into the buyer’s favor, sellers need to remain competitive and likely readjust their list price.
Price Changes:
There were 8 fewer homes with price adjustments in May of this year compared to last- roughly a 0.6% decrease. With interest rates having dropped into the high 3’s, sellers didn’t have to price as aggressively because buyers had more money to work with due to the lower cost of their mortgages.
Southern New Hampshire May Home Sales Up by 2.53%
Like Massachusetts, Southern New Hampshire exhibited an increase in sales and an increase in prices. Sales are up by 32 sales, and prices increased by $14,435 year over year.
What’s Ahead?
In Anthony’s recent market update video, he explained that after a spring full of multiple offers and bidding wars on homes the market has started swinging into the buyer’s favor now that inventory has increased. Sellers had the upper hand but now buyers have more selection and time to make offers because there is more to choose from. So far it seems to be the typical seasonal adjustment. Buyers are also enjoying the lower than predicted interest rates which also really helps them! It’s a great time for buyers to update pre-approvals based on the new lower rates.
Sellers should not panic but must be smart about their pricing and be realistic. March is behind us now and they have to realize that. If their home isn’t selling now it will only get harder as we get deeper into summer. Therefore sellers must consider adjusting their price. Sellers need to attract as many buyers as possible to drum up competition, so if the home’s been on the market for a few weeks, it’s likely time to revisit the list price and make an adjustment. It has little to do with the property itself, and more to do with the concept of supply and demand.