Massachusetts Weekly Real Estate Market Report - December 11, 2023
YOUR Massachusetts Real Estate Market Update for the week of December 12th
Annnnnd we are back. Back to what we would consider normal for this time of year that is…
In this video we will go over the Single-Family and condo markets in the state of Massachusetts. And we will also do a quick interest rate update… And we will also talk about some relevant current events.
Hi I am Jeff Chubb – A recovering Investment Banker turned Real Estate Agent that sold more than a 1,000 homes. If you have any questions about the real estate market, then know I am here to help.
Another weekend and another precursor to what is to come. One of our buyers submitted an offer this weekend… If you guessed that it was a multiple offer situation, then you would be right. 5 offers.
They are getting to do a home inspection, but there was a $5,000 home inspection threshold on any issues. They put in $15,000 in appraisal gap coverage and obviously went well over the asking price.
And now that we can come to a conclusion that last week was an outlier week for inventory and that it is back to its downward trend… We are really starting to get a picture of the 2024 year.
Here is my best analogy which should hit home this time of year. The seller’s had been partying… Having a great time and this was essentially the time leading up to the first half of 2022. Second half of 2022 was the party winding down. 2023 was the hangover and now it seems like we just had a little hair on the dog and are about to ramp up again. And time will tell exactly how big of a rager of a party it’s gonna be in 2024.
By the way, if you are an investor who is looking for off market houses, then reach out as I would love to hear what your buy boxes are. We get off market opportunities each and every day and I would love to play a little game of matchmaking.
And just as a heads up, these off market opportunities are cash or hard money only investments. No conventional financing is allowed.
Let’s get into it all and jump into the Single-Family market stats.
Like I said earlier… We are back. Back to the big weekly inventory Fall drawdowns. There are now 3,799 single family homes on the market in the state of Massachusetts. This means that there are 18.4% fewer houses on the market today than 28 days ago as inventory fell by 269 units last week.
The last time inventory was this low was on Labor Day weekend in the beginning of September. But be prepared as historically speaking we see inventory levels drop until some time in February. I say about because it really is weather dependent. Lots of snow means that the Spring market is pushed out further into the Spring.
This graph does a great job showing how last week was an outlier and that the leveling off of inventory levels was a one off. We are back to some hefty inventory decreasing numbers.
Buyers today have 875 more houses to look at when compared to the same time in 2021. And 438 fewer houses to look at when compared to 2022.
What’s crazy is the 875 unit 2021 comparison had a big week over week move. As buyers had 983 more single family homes to look at just last week. When compared to 2022, the number grew slightly to 438 units compared to the 423 last week.
New listing activity continues to go toe for toe with 2022.
There were 513 Single Family homes that came on the market this week. This was 14 or 2.8% more units than the same week last year when 499 Single Family homes came on the market. As a comparison, last week we listed 11 more houses than the last week in 2022.
Like I said. Toe for toe.
The 4 week rolling average is 600 units. But as we have mentioned, from now until the end of the year, we won’t really be worried about these 4 week rolling averages as the market does its seasonal slowdown.
Under agreements bounced back this week.
We had 690 homes go under agreement which was 1.3% more than the same week last year when 681 single family homes went under agreement.
This was a big move. As we have talked about, we have been in the negative 10 to 15% range for sales levels when compared to last year for the last three months or so.
But this week we actually put more houses under agreement. That’s the first time that has happened since back in the end of April. In other words, I think the data is saying that this is the boost in under agreement activity from interest rates hitting 4 month lows. 2024 home buyers… Please take note.
The four week rolling average is 679 units. So we were below the 4 week rolling average for Under Agreements as well.
So when compared to last year's market… New listings were up by 2.8% while under agreements were up by 1.3%.
There were 526 Single Family homes that closed last week for an average sales price of $733 thousand dollars and a median sales price of $570 thousand dollars. Sales levels compared to the same week last year were down by 16.6% as there were 631 Single Family homes that sold this week last year for an average price of $655k.
Months of inventory. This is how we determine what type of market we are in. 0 to 5 months is considered a sellers’ market with the closer to 0 you get… The more aggressive a seller’s market.
This week Months of inventory ticked up to 1.41 months from last week's 1.57 months. The 1.41 months this week is compared to the 1.29 months this week last year.
Real quick, my shameless plug… I just wanted to mention that if you are thinking about buying or selling a home, then it would be a true pleasure to help!
Now onto the Condo market…
The drawdown in the condo market is back as well. We have 2,192 condos on the market as of Monday. This is a 129 unit decrease from last week. Currently, there are 16.6% fewer condos on the market today than 28 days ago.
In the weeks past we had talked about how the condo inventory levels were threading the needle between 2021 and 2022. At this point, it’s pretty much just tracing the line from 2022.
We now have 226 more condos on the market today than at the same time in 2021. And only 17 fewer condos for buyers to look at when compared to the 2022 inventory levels.
A little uptick in new condo listings!
There were 255 condos that came on the market with a four week rolling average of 260 condos. Want to take a look at all Parris Landing Condos For Sale?
We listed 22 or 9.4% MORE condos this week than the same week last year when 233 condos came on the market.
Fell a little short when it comes to under agreements though. This week we put 283 units under agreement. This 283 units was 7 units or 2.4% shy of last year's numbers when we put 290 condos under agreement.
The four week rolling average is 268 units.
So 9.4% more listings that came on the market when compared to this week last year while selling 2.4% fewer condos.
There were 212 condos that sold this week for an average sales price of $726 thousand dollars and a median sales price of $559 thousand dollars. This same week last year there were 225 condos that sold. So sales levels were down by 5.8%.
Months of Inventory had a big drop to 1.99 months from last week’s 2.20 months. This is compared to the months of inventory levels of 1.80 months this week last year.
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Time to talk about Interest rates…
Pretty much no movement this week. I consider that a victory. Rates are at 3 to 4 month lows. Buyers are coming back into the marketplace. Anything lower might not be great at this point for a tight inventory market.
Buyers are coming back into the marketplace. Anything lower might not be great at this point for a tight inventory market. And the CPI data came out today. It came right in line with what was forecasted at .3% for the month of November.
It’s going to fall more. At least that’s what the M2 Money Supply data is hinting at us. Which would give some room for the FED to cut rates.
The more these rates go down, then the hotter this market will get. The hotter this market gets, then the more pricing will jump with buyers getting worse terms like not being able to do a home inspection and having a never ending search for a house where you put 10 or 15 offers in on one until you finally get it.
NOW is the time to buy. Last week I talked about how all the ingredients for the hot 2024 market were being lined up and we were getting ready to bake that cake… Well, time is ticking as we are in the oven preheating stage right now.
I put out two videos this week that I really think are worth a watch. The first one “Is it inflation or Appreciation” is actually so far my most popular video ever. So thank you to those that watched. But I followed it up with a video on “Who or What is to blame for high real estate prices”. It’s probably not what you would think. That one is also worth a watch!
Want to talk about your personal real estate needs?
Whether you are looking to buy in the next 9 or 90 days, then I would love to chat with you and find out about your real estate goals.
And if you are thinking about possibly selling, then we can help you traditionally or even offer you a cash offer on your house for a seamless and stress free sales process. No matter what your situation, we can help you get it done.
Also, should you know of anyone that is thinking about buying or selling a house, then I truly appreciate you passing along my information.
You can also visit YouTubeRealEstateAgent.com and fill in your info then I will reach out to you!
Until next time.