The Massachusetts real estate market is extremely competitive right now. This isn’t news to you if you’ve attempted to buy or sell a home in the Greater Boston or Metro West areas over the last few years. What is the reason for this and how is it impacting both buyers and sellers? Here’s a closer look at the competitive real estate market in Massachusetts.
Reasons Behind the Current Market Conditions
Supply vs. Demand
There are many reasons for the competitive nature of the market. First and foremost is the discrepancy between demand and supply. There are far more buyers looking to purchase than there are listings available. The inventory shortage has been a problem for many years now, and its impact continues to grow with each passing year.
Home prices have been rising steadily for years now. In many markets, it has reached or exceeded the 2008 highs. Any time market performance is strong, it generates interest from even more home buyers looking to benefit from those gains. Similar to stocks, people tend to buy homes when they see an inclining trend. This added interest creates even more demand in a real estate market that was already high in demand and low in supply.
Interest Rate Trends
Interest rates started climbing a bit earlier this year, after many years of remaining very low and steady. Based on announcements from the Fed, rates are expected to rise further both this year and into next year. As a result, many buyers are scrambling to find a home quickly before any drastic rate changes.
Impact of the Competitive Real Estate Market in Massachusetts on Home Buyers & Sellers
What Sellers Should Know
It’s truly a great time to sell a home. Home sellers can get maximum value right now due to the competitive nature of the market. Properly priced homes go under agreement very quickly and with multiple offers. What more can a seller ask for!
What Buyers Should Know
Buyers need to act quickly in this type of market. Given the probability of multiple offers, it’s critical to present strong offers. This means you will need a good pre-approval letter from a reputable local lender, include a strong offer price (above list price), and present clean offers with appealing terms and conditions.
It’s important for both home buyers and sellers to work with an agent or team that understands the current market. Marketing approaches, offer preparation, and contract negotiations are handled very differently in this type of market. If you are looking to buy or sell a home in Massachusetts, please give us a call. We can help you maximize your home sale and/or successfully compete against other buyers in your hunt for a dream home.
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