The east coast, even specifically in Massachusetts, is seeing a shift in the real estate market. The time to sell your home is now. Massachusetts is finding record home prices just this past May. The inside knowledge of the market can greatly benefit or hurt your choices regarding the sale or purchase of a home.
The Current Status
A single-family home in Massachusetts increased to 9.2 percent which is a decent improvement, to $385,000, compared to May 2016, according to the Massachusetts Assn. of Realtors. This also tops the record set last summer which gives strong signals that the overall market is getting ready to be in full swing towards the end of the year. Yet, even though the market is great for sellers, the inventory of homes for buyers is on the fewer side in the state.
Even though more homes come on the market around this point of the sales season, they are going fast. Seller’s are in complete control at this point in time where demand is high and bidding wars are driving them even higher.
In order to compete in this seller’s market, buyers are coming in with cash and dropping any demands. Due to the environment that buyers are in right now, homes are being appraised way below the sale price. This is, of course, making it difficult for first-time, mortgage-dependent buyers to triumph during the seller season. Nationally, prices of homes are up 5.7 percent year after year, according to Black Knight Financial Services.
Buyers: “What Do I Do?”
With demand in homes so high, never not make your best offer. The idea of wanting to pay as little money as possible for the best home is an American idea that you have to ignore in a seller’s market. There are no “deals” in a seller’s market. Do not hesitate to make a strong offer on a home that you want. You will find that homes will pass you by and other people will be offering higher bids because of the limited availability.
In the same mindset, do not wait too long to make a decision on a potential new home. Just as it is ill-advised to impulse buy a home, do not spend too much time contemplating a home because it will be snatched up by someone else. You could lose your dream home by waiting around.
In a seller’s market, it benefits to get all the advice you can get. Never work with an agent who does not understand the market. You need a strong guide to give you thoughtful and enlightened advice throughout the fluctuation of the market. Real estate agents work closely with sellers so they know the true in’s and out’s of the current market.