We’re back with another housing market update for Massachusetts and New Hampshire. Today we’re diving into the current state of the market as we finish up the first few weeks of 2022 and what the current conditions mean for anyone looking to buy or sell. Let’s dive in!
What’s Going on With Inventory?
When this market update was filmed back in 2021, one of the main talking points was about the inventory levels or the number of homes sitting on the market. At that time, the levels were at historic lows. Interestingly enough, now in 2022, the levels have gotten even lower.
One of the things that we talk about in the industry is that a balanced housing market has about six months of inventory available on the market. This means that at any given time, there are enough homes to keep up with six months of buyer demand. As of last week, in the state of Massachusetts and New Hampshire, inventory levels were only at about two weeks of supply. What this means is that if there was not another home listed for sale, there would only be enough available homes to keep up with buyer demand for two weeks. Last year at this time, inventory levels were at about three weeks of supply. While it doesn’t seem like a major drop, that difference in supply is creating even stronger buyer demand in today’s market.
The Latest on Home Prices
The demand that we’re seeing today is having an interesting impact on the prices of homes. When we look at pricing for single-family homes, we see that it’s gone up year-over-year. The average list price of homes 12 months ago was $632,000. Today, we’re seeing the average list price sit at about $680,000, which is just slightly under a 10% increase.
What does this mean for anyone looking to buy or sell a home? For sellers, it means that you’ve probably seen an increase in equity, most likely averaging around 5-6% in just the past year. For buyers, while your monthly payment may go up a bit due to the increase in the purchase price, it’s not going up by the same percentage as the sales price.
What Are The Trends Year-To-Date
We know what you’re thinking, it’s only a few weeks into the year! Is it too soon to look at trends? How many homes could have really sold? It’s actually quite a bit more than you might think.
When we average both Massachusetts and New Hampshire, at about this time last year we had sold around 1500 homes. When we average both year to date, we’re sitting at just over 1100 homes sold. The really interesting thing is happening with those sales that have closed. Last year the average price of the homes that were sold year to date was $591,000. So far into 2022, the average price of the homes sold is $676,000. One other interesting fact when looking into the data is that last year the homes that were closing were closing just at list price. On average, homes weren’t selling above list price during this time period in 2021. However, for 2022, we are seeing a slight increase above the list price - just around 1%. The average list price was $671,000 with an average sales price of $676,000.
Overall, we predict that it’s going to shape up to be another exceptionally strong market for sellers. Over the year, we predict that appreciation will remain about the same in the 5-8% range. Additionally, buyer demand continues to be strong, and supply is not able to keep up. In fact, every property that we listed this week had multiple offers. We also know that our buyers who were writing offers were also facing multiple offer situations. While this is obviously great for sellers, it’s not necessarily bad for buyers as long as they understand what it’s going to take to be successful in this market. If you have any questions about what this could mean for you whether you're buying, selling, or investing in either Massachusetts or New Hampshire reach out to us one of our agents would love to help guide you through the process!