Selling a Home in Boston Today: It’s All About Perspective

October 14, 2022

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Perspective Matters When Selling Your House Today

Pictures of Front Doors for this post by Realtor Michael Mahoney of Century 21 American Properties. If you need some real estate advice, you may reach out to Michael Mahoney of Century 21 American Properties at 617-615-9435.

 

Doom, Gloom and the “Scare Fest” Headline News Designed to be Clickbait by the “So Called News” Just in Time for Halloween Pumpkin for Halloween

The latest headline news is not telling the whole story. In many cases, we are still seeing multiple offers on properties. This week, we put a property on the market @ 9 Belnap Road in Hyde Park, MA.  This home is straight out of the late 60’s.  It comes replete with the requisite basement bar reminiscent of the Bill Russell and Wilt Chamberlain era basketball rivalry.

Picture of the 70s Bar at 9 Belnap Road in Hyde Park MA

Does the latest news about the housing market have you questioning your plans to sell your house? If so, perspective is key.

The Realty: Fewer Homes for Sale than Pre-Pandemic

While the supply of homes available for sale has increased this year compared to last, we’re still nowhere near what’s considered a balanced market. A recent article from Calculated Risk helps put this year’s increased inventory into context (see graph below):

A chart on housing supply nationally by Realtor Michael Mahoney of Century 21 American Properties in Walpole, MA 02081. If you cannot see this chart, you may call Michael Mahoney at Century 21 American Properties at 617-615-9435. If you would prefer to send an e-mail, you can email Michael Mahoney using mike@mmahoney.com

Housing Supply: National Level Inventory of Homes for Sale Comparing 2020 & 2021 to Today

It shows supply this year has surpassed 2021 levels by over 30%. But the further back you look, the more you’ll understand the big picture. Compared to 2020, we’re just barely above the level of inventory we saw then. And if you go all the way back to 2019, the last normal year in real estate, we’re roughly 40% below the housing supply we had at that time.

Why does this matter to you? When inventory is low, there is still demand for your house because there just aren’t enough homes available for sale.

Massachusetts Association of Realtors: Pending Home Sales September 2022

 

Your Life Can Change Quickly: Homes Are Still Selling Faster Than More Normal Years

And while homes aren’t selling as quickly as they did a few months ago, the average number of days on the market is still well below pre-pandemic norms – in large part because inventory is so low. The graph below uses data from the Realtors’ Confidence Index by the National Association of Realtors (NAR) to illustrate this trend:

A chart on showing how quickly homes are selling at the national level by Realtor Michael Mahoney of Century 21 American Properties in Walpole, MA 02081. If you cannot see this chart, you may call Michael Mahoney at Century 21 American Properties at 617-615-9435. If you would prefer to send an e-mail, you can email Michael Mahoney using mike@mmahoney.com

Homes Are Selling Faster than Before the Pandemic

As the graph shows, the pre-pandemic numbers (shown in blue) are higher than the numbers we saw during the pandemic (shown in green). That’s because the average days on the market started to decrease as homes sold at record pace during the pandemic. Most recently, due to the cooldown in the housing market, the average days on the market have started to tick back up slightly (shown in orange) but are still far below the pre-pandemic norm.

What does this mean for you? While it may not be as fast as it was a couple of months ago, homes are still selling much faster than they did in more normal, pre-pandemic years. And if you price it right, your home could still go under contract quickly.

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Buyer Demand Has Moderated and Is Now in Line with More Typical Years

Buyer demand has softened this year in response to rising mortgage rates. But again, perspective is key. Getting 3-5 offers like sellers did during the pandemic isn’t the norm. The graph below uses data from NAR going back to 2018 to help tell the story of this shift over time (see graph below):

A chart on how the demand for housing is returning to more typical levels on the national level by Realtor Michael Mahoney of Century 21 American Properties in Walpole, MA 02081. If you cannot see this chart, you may call Michael Mahoney at Century 21 American Properties at 617-615-9435. If you would prefer to send an e-mail, you can email Michael Mahoney using mike@mmahoney.com

Prior to the pandemic, it was typical for homes sold to see roughly 2-2.5 offers (shown in blue). As the market heated up during the pandemic, the average number of offers skyrocketed as record-low mortgage rates drove up demand (shown in green). But most recently, the number of offers on homes sold today (shown in orange) has started to return to pre-pandemic levels as the market cools from the frenzy.

What’s the takeaway for you? Buyer demand has moderated from the pandemic peak, but it hasn’t disappeared. The buyers are still out there, and if you price your house at current market value, you’ll still be able sell your house today.

Bottom Line

If you have questions about selling your house in today’s housing market, let’s connect. That way you have context around what’s happening now, so you’re up to date on what you can expect when you’re ready to move.

 

About Realtor Michael Mahoney

Michael Mahoney | Realtor® | 617-615-9435 | mike@mmahoney.com

I am Michael Mahoney, a full-time Realtor® in the Boston area affiliated with Century 21. I have been a Boston area Realtor® since late 2001.

It’s my mission to help people realize their form of the “American Dream” using homeownership, real estate wealth building, and real estate investment as cornerstone of their financial foundation.

I work in all price points. The majority of my business is repeat clients and the referral of clients from all over Eastern Massachusetts.

I view my role as the advisor who helps people go from the life they have to the life they dream about. I have sold everything from mobile homes to amazing estates. I have sold hundreds of homes in almost every town in Suffolk and Norfolk County. I also sell homes in Plymouth, Bristol and Middlesex Counties. When asked what my specialty is, I often joke and say “from section eights”.

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The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Michael Mahoney, Realtor® does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Michael Mahoney will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.

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Our regional Century 21 American Properties office is located at 246 Main Street in Walpole, MA 02081. Our office services all of Greater Boston