It’s fall and we’re grappling with a pandemic, but it’s still a seller’s market in Massachusetts! There are several key contributing factors to current market conditions. Understanding this can help you better navigate the home buying process. Here are three reasons why it’s a seller’s market in Massachusetts right now.
1 – Inventory Is Sparse
Inventory has been low for a few years, but it is even lower right now due to COVID. Many people are hesitant to sell amid a pandemic and/or other uncertainties related to the pandemic. With few homes on the market, those that do get listed are selling very quickly. As a buyer, it’s important to monitor the market and receive daily updates for new listings. Additionally, as you start your home search, anticipate that it may take longer to find a home that matches your needs.
2 – There’s an Abundance of Buyers
Not only are there fewer listings but there are also more buyers. Many people have been self isolating and working from home. Everyone is re-evaluating their housing needs and looking for more indoor and outdoor space. More buyers are on the market in search of suitable homes given the “new normal.” In fact, there’s been a lot of talk about city dwellers migrating to suburbs because of work-from-home arrangements and the desire to have more space.
Given the abundance of buyers, it’s very common to face competition when bidding on homes. You can expect to encounter multiple offers and bidding wars. Read our article on How to Win Bidding Wars for some tips on this.
3 – Interest Rates Are Historically Low
The third contributing factor to the current seller’s market in Massachusetts are low interest rates. They are historically low right now! Many buyers during the summer months secured rates under 3%, which is amazing. With rates so low, it may be more cost effective to buy than to rent. Renters entering the buying market is increasing demand even further.
What You Should Know As a Buyer
With all of this going on, what should you know as a buyer? First, get pre-approved. Homes are going under agreement very quickly and you can’t effectively compete unless you can demonstrate that you qualify to purchase a home. Secondly, connect with a local real estate agent and request daily updates on new listings. Homes can sometimes sell within just a day or two of being listed so staying up-to-date is key. Now that you understand a little bit more of why it’s a seller’s market in Massachusetts, you can approach it with realistic expectations and timelines. Don’t forget to contact us for assistance with your legal needs once you’ve found your dream home!