“The housing market cool down is upon us,” reports Linda O’Koniewski, CEO, Leading Edge. In a straw poll between our company and agents in the marketplace, 43% of properties listed over the last month did not go under agreement in the first week or by offer deadline. “That is a dramatic shift from just six weeks ago when virtually all but some high-end, or over-priced homes sold with many offers.” Don’t think for a minute that homes aren’t selling. Many buyers are waiting until after the deadline because they aren’t going to pay astronomical amounts over asking. Many of these homes have multiple offers…after the deadline.
“Buyers are experiencing interest rate shock and many are waiting for house prices to come down. While we may hear of house prices falling in other markets nationally, Massachusetts and Southern New Hampshire are experiencing a severe housing shortage. Rents are at unprecedented highs and Core Logic expects prices to continue to rise by 5% this year.
“Buyers are kicking themselves that they didn’t purchase sooner, but with the Fed telling us interest rates are going up again and demand outpacing supply, buyers who come to accept the new reality should lock their rate and go shopping because all signs indicate it will be more expensive to borrow and properties will continue to grow in value.” (There will be towns and neighborhoods that were grossly inflated that may see negative price adjustments.)
“Sellers need to set new expectations and will have to negotiate. With the playing field leveling off a bit, home inspection and financing protections have returned to the market. The days of challenging the market with price are over for the foreseeable future,” concludes O’Koniewski.
The following are location-specific overviews of market changes year-over-year, for a sampling of neighborhoods in the Greater Boston Area. Don't see your town listed? Contact me for a custom report!