Anthony Explains Why the Fall Housing Market Has Changed on Fox 25 News
Fall is the second busiest time in the housing market, but Realtors are seeing quite a change with how things are actually shaping up. With some important information all buyers and sellers need to know about here to break it all down is Anthony Lamacchia with Lamacchia Realty . Thank you for being here this morning.
People think spring and summer are the best times to get on the market and sell your house or your condo but fall is the next busiest.
Yeah fall is usually the second busiest time of year and it’s looking like it’s going to shape up that way but it is different than the spring market.
Why what’s the deal?
There are a lot more homes on the market. There were 31% less homes in March than there are right now. There are 27,000 homes on the market in Massachusetts now and there were 18,000 in March. And the same thing in Boston, Boston is up 52% since March.
What’s behind something like that, any idea?
I think that for starters it was an unusual slow summer and I don’t know if that’s because more people went on vacation or another factor, but I know it is sellers are starting to get a little crazy with their pricing, they’re starting to see what their neighbors’ homes are sold for in the spring and summer and they’re saying oh well I want more, or more than that. The thing that sellers need to look at is not necessarily when a home sold, the actual sold date but when it went under agreement.
I see ok.
For example if a home sold in July if that contract was signed in April when inventory was much, much lower, it’s a totally different market.
So great time for buyers then.
Yes it is
So if they want to get out there what do they need to know
If you’re a buyer you have a better selection now than you’ve had in 2 years. The last time inventory was this high was right around the same time 2 years ago in 2012. All the buyers who’ve been screaming and mad about not having any inventory to look at–
Get out there!
Get out there because it is a good time.
So mortgage applications are way down so obviously there’s a lot on the market and people aren’t buying so what do you think it’s going to take for people to get out there and start snapping things up?
Don’t get me wrong I don’t think there’s no demand, there are buyers out there, the demand and the buyer activity is definitely up since August, I found it unusually slow in August but it is definitely busier, but the problem is so far, and we’re early here in September it’s only the 15th, so far it does not seem like enough buyer activity to eat up all the homes that have come on the market.
There should still be plenty of inventory
There should be
Any different between condos and houses I know sometimes we say,
Same thing, when you look at Boston, 44% more condos on the market today than there were 6 months ago so it’s definitely a world of change. You know if you’re looking to sell this fall you have to be realistic.
Of course it is! But not only do sellers need to look at sold statistics but this is one of those rare times they need to pay attention to how many homes they’re competing with. And they really need to think about that. If there are 8 homes in your neighborhood that are on the market that are similar to yours you’ve got to beat them somehow. You need to look better than theirs, and your price should be better as well and then yours will sell first.
Ok so let’s say you’re putting your house on the market now it’s the fall, and you’re worried about moving into the winter and not a lot of people are biting on your property, when do you know when it’s the right time to lower the price?
We say that most of the time we know if the price is right or wrong within 21 days. In times like August when the whole market was slow, you need to have a little more patience. But if your home has been on the market 2 or 3 weeks and it’s not getting the activity that it should or you haven’t received any offers, by the 3rd week or 4th week you need to strongly consider a price adjustment and also a real adjustment; sometimes you see sellers who make an adjustment—
Exactly. You took the words right out of my mouth– house is on the market for $400,000 and it’s not selling and they say let’s try $395,000. Well that doesn’t cut it.
What if you start too high to begin with? That’s another downfall too?
It definitely is. What I meant by sellers need to pay special attention to when the home went under contract because if the neighbors’ house sold for $400,000 in July, and it went under agreement in April, doesn’t necessarily mean that their house will sell for $400,000 now. Where there’s much more inventory and much more to choose from, you may need to price a little bit lower. You want buyers to be attracted to your home.
So conversely if you’re going to buy and you see a price and you think it’s way too high how do you know what’s insulting and what’s a reasonable first offer?
And here’s the thing, buyers don’t necessarily usually care about what’s insulting– they don’t! It’s true, think about it, when you bought a home you didn’t say well gee I don’t want to insult them.
Buyers want a good deal.
Exactly! Buyers care about paying what it’s worth. It’s no different than a product at a store. When there’s a sale the buyers flock to it. Same thing.
Ok interesting stuff Anthony. Thanks for having us thanks for being with us!
No problem thanks for having me!
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