John and Anthony Discuss the 2013 Real Estate Outlook
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Related blog: A Look Ahead at Real Estate in 2013
Well the New Year is almost upon us, and if you’re in the market for a new home, now is definitely the time to start planning the process. Joining us now to shed some light on next year’s real estate market are John and Anthony from Lamacchia Realty . So good morning to both of you.
All right, new year, new house, what in the world is the market going to look like?
I think we’re going to have a very similar year to 2012. Inventory has been down a full year which is a good thing we had too much inventory for too many years and that’s what caused the stall in the market
A good thing for who though?
A good thing for everyone, yes absolutely, because remember real estate is not like the stock market, it doesn’t go down and then right back up again if you look at history, it goes down stays flat then it goes up again, right now we’re in the stay flat up a little bit area and that’s a great thing.
So when it comes to inventory we’re kind of talking good old supply and demand—if we have a certain number of houses– we’re actually down this year compared to last year?
Right, we’re down, what is it 20%?
Right now there are 24,000 homes on the market in Massachusetts and last year at this time there were 30,000, so we’ve been month after month down about 20%.
Ok so what will we expect if I, the buyer, go out what does that mean for me as far as prices?
Prices are up slightly, about 2%, and depending on the town, we’ve seen some towns that with higher priced towns that are up double digits, so buyers need to be ready to act quickly, they can’t –you know they know what homes are worth, they’re doing the research, they’re seeing the sold statistics, so if they love a home they should be paying asking price if it’s priced correctly, in some cases we’re still seeing prices go over the asking price, so buyers need to be very serious about making an offer.
And neighborhoods too seem to be– houses I’ve noticed are getting assessed a lot higher in a lot of different cities, and we’re kind of getting away maybe from that problem of foreclosure in my neighborhood that’s going to affect the price of my house of no?
Yes there’s no denying that there’s still foreclosures going on there’s thousands of homes upside down, that’s definitely still going on out there but now we’re at the point where there’s enough buyers out there to eat it up so as those foreclosures come on the market, short sales, things like that, there’s enough buyers out there to buy up the homes, which is great.
Right they’re not just sitting there and then the prices drop and that’s always bad for the person who’s actually selling the home
Those days are behind us at this point.
Yeah we think so and as you mentioned earlier, there are more buyers out there and the demand is up. There are more buyers than sellers and we anticipate that to be the case next year as well.
Well Sherri is talking about a big storm headed our way and we’ve been lucky so far but when it’s snowing do people really trek out to these open houses and go and check out homes or no?
It does slow down. And that’s one of the reasons that in 2012 all twelve months home sales were up. And if you think about it, the year before what was it January of 2011 and February of 2011 it snowed like twice a week?
It was crazy, I will never forget that.
We couldn’t sell anything. Now it really slowed down so when you have continuous snow like that it does slow the market down, if you get a storm here or there it’s not as big a deal, so tell Sherri to send the snow to New Hampshire or something!
Upstate New Hampshire! We sell in Southern New Hampshire!
She says, hey, from the weather center: No She’s a New Hampshire girl–you think these things would be easy! So overall as we look ahead and get a wrap of things do we think we’re going to see homes priced higher or no? As far as that’s always good news for whoever has been hanging onto their house through these doldrums essentially.
I would say in some cases, sure, there are going to be some sellers who are going to try and push the market a little more, we don’t anticipate a huge bump up in pricing, there might be a slight incline in higher priced towns in 2013, but we most likely will see similar sales volume as this year and we may even a little more because you have that pent up higher demand.
Yeah definitely we’ll have to wait and see what happens as we head into the New Year but we always ask this question, is it a good time to try to buy a new home?
I certainly think so, and I know people will take our opinion as biased but interest rates are still lower than they have ever been, home affordability is better than it’s ever been, in the last year the next year home affordability is going to be great, so while we’re in this period of flattening of the market kind of at the bottom and even like John said a little appreciation, that’s a great time to buy because 3 or 4 years from now prices are going up 5 to 10 % a year, I guarantee there are going to be plenty of people who say geez I should have bought in 2012 or 2013 I didn’t realize that, I thought it was going to go down more
There’s always the chance it could go up too well definitely some things to think about if you’re in the market for a new home or you’re trying to sell John and Anthony from Lamacchia Realty thanks so much for joining us this morning.
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