It’s no secret that the current housing market is more complicated than ever. Numbers alone do not tell the whole picture. We are still experiencing low inventory, and properties are selling – days on the market have not shifted significantly, but it’s important to price smartly. Buyers want to buy but are more risk-averse and less willing to reach past their comfort zone. The good news for buyers and sellers is we are in a market area that has traditionally been resilient. Although the 4th quarter may not see a price increase, we at CHS believe we will hold steady. Buying a home is not a short-term investment – even though this is a cautious market, we will have sellers who want to sell and buyers who need to buy.
Things to keep in mind:
Over the last year and a half we haven’t seen an increase in market price like this. In some areas the market is up almost 35%. So, as a seller it’s important to remember the value of your home today is already greater than it would have been at this time last year. As sellers voice concerns about missing the market window, we would say that you are already ahead of the game, and as long as we are mindful and interpret the market thoughtfully, your home will sell and sell well. Although we may see offers over asking, we may not see 12 offers and buyers stretching to 20 to 30% over asking because they have already done that. These new market values take that into consideration.
So where are we?
We are in a more balanced market. One where buyers get a moment to think about the purchase they will make, with time to ask important questions. Where sellers also have the time to make good decisions about when they are ready to sell and time to prepare and think about their next steps thoughtfully. We will also have better data about the market as it stabilizes, which will benefit both buyers and sellers. – Buyers, because with good market data available, they will feel less intimidated and more confident about making a strong offer. Sellers, because they too can feel more confident about knowing what to expect when considering a listing price.
Many market areas have had and traditionally have low inventory. In these areas, rather than a downward trajectory, we will see prices stabilize. For example, for the 3rd year in a row the median price for a single-family in Brookline has exceeded $2 million, with a big leap up in the first nine months of this year – $368,500 over 2021. This year, the lack of single-family inventory has helped keep the median high; thus far, we have not seen the number of properties for sale increase.
A few stats:
- Brookline singles have a median now of $2,400,000 up from $1,937,500 at the beginning of 2020 an increase of $462,500, Up 23.9%
- Newton singles have a median now of $1,600,000, up from $1.275,000 at the beginning of 2020, an increase of $325,000, Up 25.49%
- Wellesley singles have a median now of $1,950,000 up from $1,450,000 at the beginning of 2020 an increase of $500,000, Up 34.48%
- Weston singles have a median now of $2,392,500 up from $1,455,000 at the beginning of 2020 an increase of $937,500, Up 64.43%
- Needham singles have a median now of $1,500,000 up from $1,120,000 at the beginning of 2020 an increase of $380,000, Up 33.93%
- Jamaica Plain singles have a median now of $1,250,000, up from $845,000 at the beginning of 2020, an increase of $405,000, Up 47.93%
- West Roxbury singles have a median now of $805,000, up from $630,000 at the beginning of 2020, an increase of $175,000, Up 27.78%
- Roslindale singles have a median now of $762,500, up from $640,000 at the beginning of 2020, an increase of $122,500, Up 19.14%
- Dedham singles have a median now of $700,000 up from $520,000 at the beginning of 2020, an increase of $180,000, Up 34.62%
- Watertown singles have a median now of $850,000 up from $714,950 at the beginning of 2020 an increase of $135,050, Up 18.89%
- Belmont singles have a median now of $1,650,000 up from $1,140,000 at the beginning of 2020 an increase of $510,000, Up 44.74%
- Somerville singles have a median now of $1,150,000 up from $875,000 at the beginning of 2020, an increase of $275,000, Up 31.43%
- Cambridge singles have a median now of $1,870,000 up from $1,548,000 at the beginning of 2020 an increase of $322,000, Up 20.8%
Here are some things to expect in the near-term future:
- Home prices are likely to stay level for some time. Especially with limited inventory likely to continue.
- Mortgage rates are likely to become more stable, though most will see an uptick in mortgage costs. That means, depending on how they finance, buyers will be weighing the additional costs of borrowing into what they can purchase.
Sorry, the comment form is closed at this time.