Are you curious about what recent world events and increasing interest rates mean to the housing market in Massachusetts? We’re breaking it all down today in our latest market update.

 

Under Contract and Closed Listings

As we wrap up the first quarter of 2022, we wanted to take some time to look at the state of the market. Right now, the housing market is probably one of the strongest seller’s markets than we’ve ever seen in the history of real estate in Massachusetts. With all that is happening right now, it might be surprising to hear that the market is still as strong as it is. Let’s take a closer look at the stats that we are seeing.

 

Year to date, we’ve put under contract 9,100 single-family homes and just shy of 5,000 condos. When we compared this to last year, we can see that we are down. At this point in 2021, there were about 12,000 single-family homes under contract and just under 6,500 market. Now, when we look at the number of homes that have sold, we’re going to get an even bigger picture of what’s going on in the market. Keep in mind that what’s sold represents homes that were listed for sale at the end of 2021. These numbers are down a little bit as well. In 2021, we had sold 9,200 single-family homes and about 4,600 condos. This year, in the state of MA, we have sold about 7,000 single-family homes and about 3,400 condos. 

 

Appreciation

One of the most fascinating stats this month is in regards to appreciation. In 2021, the average single-family home was selling for $603,000. In 2022, that number is up to $656,000 which equates to about $53,000 in appreciation in just the last 12 months. When we look at condos, that number gets even larger. In 2021, the average condo was selling for about $555,000. In 2022, the average price has jumped to $619,000. That is $64k in appreciation simply by owning a condo in the state of MA. 

 

Interest Rates and the Future of the Housing Market

One question that we often get asked is about how the rising interest rates are going to impact the housing market. The answer is quite simple. There is so much built-up buyer demand and not enough inventory. We predict that we won’t see a whole lot of change in the housing market even with the rising interest rates. We’re still going to sell homes, buyers are still going to be out there looking to purchase, and there are still going to be multiple offer situations. It's still going to be a great market for sellers. For buyers, we can understand a little bit of trepidation but there's still a great opportunity for you out there to buy. Even though interest rates are going to rise a little bit there's going to be some volatility which means if you time things just right you might be able to lock a rate on a slight decrease.

 

So, are we due for a housing market crash? None of the industry experts that we know of are predicting any kind of crash within the real estate market. Nobody's talking about this being a bubble or artificially high. Therefore, if you are waiting for a crash before you decide to buy or sell, you may be waiting for a while.

 

Bottom Line

As the market continues to evolve, it's more important now than ever to have someone on your team that can keep up with the ever-changing market conditions. Whether you’re thinking about buying, selling, or investing, our agents are here to help. They’re ready to stand by your side and give you the advice and guidance that you need to navigate this market. If you have any questions about this information or your next steps in your real estate journey, give us a call today!