Buying A Home In Massachusetts
The national real estate market has been scorching hot for the past year. Many expected the housing market to crash as a result of the pandemic. Fortunately, that did not happen. Instead, the Federal Reserve cut interest rates to stimulate the economy. In turn, mortgage rates dropped to historic lows and have remained there ever since. This has caused tremendous demand from home buyers looking to score a deal. Unfortunately for home buyers, home inventory also reached historic lows.
So, while many were looking to buy houses, there were not nearly enough houses to buy. This has created a sellers market that is truly frustrating for many home buyers. For those of us in Massachusetts, however, the situation is much better than in other parts of the country. The team at Streamline Realty is here to talk about why home buyers in Massachusetts are in a good place.
National Home Buyers Are Frustrated
Whether or not you are happy with today’s real estate market is entirely dependent on where you stand. Are you a homeowner or a homebuyer? Homeowners are thrilled at the state of today’s market. Sky high demand and low inventory is causing home prices and values to go through the roof. For home buyers, it is a source of consternation. While mortgage rates are favorable, the rest of the home buying process is tilted in the favor of sellers.
The market for a home is fierce as buyers have to deal with intense bidding wars. A survey done by Zillow Premier Agent partners analyzed and counted the strategies being used in the market. In the past 6 months there have been agents who sold houses with multiple offers. This averaged at about 4 offers before selling a home, with 13% of agents saying it took 6 or more offers. These bidding wars show how red hot the market is. People are willing to bid more, especially considering that mortgage rates are consistently hovering at 3%. Some agents are even using all cash offers to appear more compelling and get those houses sold.
The push for more bidding wars is causing buyers to drop more cash and pay more than the asking price. These fiery battles are causing a dip in the national home buying sentiment. In April, the buying sentiment decreased by 2.7 points. The sentiment is currently being impacted by the wars over getting a home and the state of affairs due to COVID-19.
Massachusetts Home Buyers Have it Best
While the Massachusetts real estate market is still tilted toward sellers, it is much better for home buyers than in other parts of the nation. Boston’s real estate has been doing great and is a result of the overall Massachusetts market. In Boston, closed sales were up 34.5%, active listings were up 9.3%, and inventory was up 18% from last month. This is huge news for people in the Massachusetts market. Unlike in other places where bidding wars are running rampant because of no supply, the opposite is happening here in Boston. Inventory rose 18% in one month alone, which means you will have more opportunities in the Massachusetts real estate market. The combination of surplus inventory and more listings explains why there are more sales. Massachusetts has more houses to go around and one of those could be your dream house.
Final Thoughts
There are many reasons why it is incredible to call Massachusetts home. This is especially true for those of us who are looking to buy a home in this great state. The fact that we have more houses available on the market than other parts of the country is a huge advantage. Plus, the data shows housing inventory has been increasing month over month. So, while it might take persistence to battle the other home buyers and win an offer, it is not impossible. In fact, the playing field is leveling.
It is important to keep in mind that even if the inventory of available homes increases for the next few months, home buyers still need persistence. Additionally, home buyers need every advantage possible. The biggest advantage you can have over other home buyers is an experienced real estate agent who understands the intricacies of your market.
If you want to take advantage of Massachusetts' amazing housing market, you should contact us now! The team at Streamline Realty is here to help you throughout the whole housing process. We want to make sure that you do not miss out on any new inventory. Having a professional realtor to help you is essential. We want you to score the best deal and find your dream home with as little stress as possible. We will help you find out where you stand and assist you in the process of getting a new home. Streamline Realty is here to guide you every step of the way.
