As we bid farewell to summer and welcome the crisp autumn air, it's the perfect time to explore the evolving landscape of the Greater Boston real estate market. Our latest blog post dives deep into the impact of changing seasons, the highs of summer's competitive market, and the pressing need for more housing inventory.
Get ready to dive into a world of design enchantment with our latest blog post! From the elegance of Chevron to the playfulness of Scallop, we're unveiling the magic of accent tiles that can transform your space into a masterpiece.
But that's not all – we're also unraveling the secrets of subway tiles, showing you how to go beyond the classics and embrace creative layouts like herringbone, vertical stacking, and even bold grout choices.
Step into a realm where your home becomes a canvas, and every tile is a brushstroke of style. Let your imagination soar and your space flourish with character. Join us on this design adventure today!
Nationally, the answer appears to be yes. Rapidly rising interest rates, inflationary prices and stock market declines have all contributed to a significant drop in mortgage applications and home sales - THIS DOES NOT MEAN A HOUSING CRISIS!
In 4 of the last 6 recessions, home prices actually appreciated and we’re optimistic our Real Estate Market will continue to stay on the healthy path. (See graph below)
Among single-family homes, some local indicators are clearly pointing toward a market correction. Compared to June 30, 2021, the number of single families on the market was up 37% and price reductions increased 20%. Pending sales and closed sales were both down.
There were some bright spots for sellers. Average sales price grew 11% year over year while median sales price jumped 9%. Days-to-offer was down 21% (a sign that buyers were quickly snapping up new inventory) and sale-to-list ratio (i.e., the final sales price divided by the original list price) was up 1.6%.
Sellers would be wise to adjust their expectations in light of these trends, particularly in the single-family arena. Pricing strategy is critical; most of our communities have seen an uptick in price reductions, which indicates it is possible to overprice a home in this market.
Today, many homes are still receiving multiple offers, however, fewer offers are arriving. Sellers (especially of homes under $1.5 million) are considering offers with financial and other contingencies. Furthermore, buyers are less likely to bid as significantly over the asking price as they were just months before.
Buyers should not assume home prices will come crashing down anytime soon. In Greater Boston, a variety of factors will continue to cause inventory to remain low. The rise in interest rates will also complicate matters. Buyers may need to reconsider what purchase price is realistic for their budget or explore an adjustable rate mortgage to keep payments affordable. While affordability will be a challenge, those who are in a position to buy now will almost certainly benefit, as home prices have historically appreciated over the long term.
__
As we move towards a crisp September, we anticipate a strong & busy Fall Real Estate Market. According to NAR (National Association of Realtors) they are predicting price increases to about 5-6% by the end of the year.
The Greater Boston housing market continues to struggle with an inventory crunch across the single-family, condominium, and multi-family markets. Fewer listings have meant fewer sales, with properties trading at higher prices.
The following observations on the first quarter of 2022 are based on MLS data for 150 communities in Greater Boston. Sellers of single-family homes were able to capture an average of 3% above their asking price in Q1.
Bidding wars were common in the most active price points in the market, which led to many properties trading for hundreds of thousands of dollars over asking price. For example, 30 homes that were priced in the $800,000 range closed for 12% to 55% above their listed price, leading to sales prices between $1 million and $1.3 million. Even with homes in the $2 million to $3 million range, buyers were, on average, willing to pay full asking price or above.
With record-breaking absorption rates persisting in both the single-family and condo markets, prices are highly unlikely to level off in the next quarter, despite rising interest rates. The biggest challenge agents have had this year is working with sellers who are “stuck.” These are homeowners who want to sell but aren’t listing their property because they can’t find a suitable home to buy in the current market.
There are solutions for this type of situation, such as making the sale of a home contingent upon the seller finding suitable housing or being able to rent the home back from the new owner after the closing. However, not every buyer wants to commit to a purchase with these terms. Agents are also encouraging some sellers in this situation to pre-market their home as a “coming soon” listing to expose the property to other would-be sellers who need to purchase a new home before listing their own.
As it’s been the case for many months, buyers in the Greater Boston, North Shore, and Metro West markets must be prepared, both financially and emotionally, to make strong offers on properties of interest and to jump on bidding opportunities quickly. That said, before making a “big” offer, buyers should keep in mind that the primary goal should not be to satisfy a temporary desire to “beat out” other buyers in this extremely competitive environment. Rather, it should be to make decisions that are truly best for themselves and their families over the long term.
To download the Compass Q1 2022 Market Report - Click here!
Maximize your home’s value this spring
Rising interest rates means buyers are rushing in—and that's good news for home sellers.
The forecasted increases in mortgage rates means buyers are racing the rate hikes and are looking to purchase today. Plus, low inventory is contributing to increasing sale prices. This spring is the right time to leverage peak demand and sell your home for maximum value.
So what do buyers really want when searching for their new home? One that is move-in ready. Here are some easy tips to get your home ready for this Spring market!
FRESH COAT OF PAINT - Keep it fresh and simple. Painting your interior neutrals with pops of color will drastically transform your space and make it feel spacious and clean. SKW&CO has many recommendations for wall and trim colors we share with all our clients… a fresh coat of paint is worth every penny and is one of the best investments you can make.
CURB APPEAL - You have one opportunity to make a first impression. An outdoor makeover could net you a healthy 83% return on investment and increases the chance of a home sale according to the National Association of Realtors. Create a warm ambiance in your yard, refresh your front door to make an inviting focal point, and add colorful flowers around your home.
REFRESH YOUR BEDROOM - Update your bedroom and create a focal point above the bed with some eye-catching art. Add interest with a variety of decorative pillows, or new nightstand decor - don’t forget to remove the clutter.
REVIVE THE STAIRWAY - Decorate your stairway and add a big impact to an area that’s often ignored. Give buyers the WOW factor the moment they step into your home with strategically placed art pieces for a refreshed look that won’t cost a fortune.
DECLUTTER YOUR KITCHEN - Many buyers have a hard time looking past clutter. SKW&CO recommends clients to remove all clutter and organize kitchen countertops, cabinets, and tables. A kitchen is one of the most utilized rooms in a house where families make meals and memories together - happiness is truly homemade!
