One of the most significant trends is the decline in home sales. Redfin, a national real estate brokerage, reports that home sales are down 37% year over year. This could be due to a variety of factors, including the pandemic and changes in buyer behavior.
In addition to declining sales, prices have also taken a hit. Six percent of active listings have seen a price drop, up from 2% the previous year. This may be good news for buyers looking for a deal, but it's not great for sellers trying to get top dollar for their homes.
Another concerning trend is the decrease in mortgage purchase applications. In January, applications were down 41% year over year, slightly worse than the 40% decline in December. This indicates that fewer people are actively looking to buy a home right now.
"There are several key factors affecting the market today."
Despite these challenges, there are still some positive signs in the market. January sale prices were up 1% year over year, even though they were 11% lower than their peak in June. This suggests that there may be some stability in the market, even as other indicators fluctuate.
So, what does all of this mean for buyers and sellers in northeastern Massachusetts? Unfortunately, it's hard to say. The mixed economic picture makes it difficult to predict what's to come in the next few months. Factors like lower mortgage rates, dropping prices, limited housing supply, and strong employment and wages are all pulling the market in different directions.
Goldman Sachs researchers believe that housing conditions are likely to be volatile for the next few months, at least. This means that buyers and sellers should proceed with caution and keep an eye out for potential shifts in the market. For example, further drops in mortgage rates could motivate more buyers, while rate hikes, inflation, and growth concerns could keep them on the sidelines.
The real estate market in northeastern Massachusetts is facing some significant challenges right now. However, there are also some positive signs of stability. If you're thinking about buying or selling a home in the area, it's important to stay informed and keep an eye on the latest trends and developments. If you have any questions or concerns, don't hesitate to reach out to me by phone or email. I look forward to hearing from you.
