The Lamacchia Monthly Housing Report highlights home sale statistics, average sales prices, the number of homes listed and pending as well as price changes for single-families, condos, and multi-family homes in Massachusetts. For New Hampshire, it presents home sale statistics and average sales prices. These factors, when compared year over year, are all indicators for predicting future trends in the market.
- Homeowners, buyers, and sellers are all wondering the same thing – when will this market change? The answer is that the change is already happening! Click to read our most recent blog about what to expect.
- Mortgage interest rates have crept up past 5% in recent weeks. Rates had stayed relatively low since the beginning of the pandemic. But now increased rates will diminish buying power. With that said, buyers that received preapprovals earlier in the year (even those approved as recently as March 1st) will need to get reapproved to adjust for these new rates. Sellers, be cognizant of the approval dates from potential buyers.
- Higher mortgage rates will inevitably decrease the number of buyers in the market. However, it may be difficult to see the impact based on the historically low available inventory. This lessening in demand does not translate to ‘cheaper’ housing.
- Homes listed year to date is still down significantly, and this historically low inventory will keep demand and prices high for some time.
- With demand still so high, homes fly off the market as soon as they are listed. Potential sellers are afraid their homes will sell too quickly and they won’t have anywhere to go. However, there are ways to be prepared and informed so that you feel confident putting your home on the market.
- As well, Anthony shared a quarterly market update where he explained all of the above points in detail including his predictions and what buyers, sellers, and homeowners should expect for the rest of the year.
Massachusetts Home Sales Down 13.6%
Sales are down 10.9 percent year over year with March 2022 at 6,105 over 6,853 last March. Sales are down across all categories.
- Single families: 3,849 (2021) | 3,591 (2022)
- Condominiums: 2,260 (2021) | 1,826 (2022)
- Multi-families: 744 (2021) | 688 (2022)
Average prices have continued their rise with another year-over-year increase of 11.4%, now at $592,895. Prices increased in every category.
- Single families: $604,633 (2021) | $656,844 (2022)
- Condominiums: $412,342 (2021) | $461,604 (2022)
- Multi-families: $554,667 (2021) | $646,809 (2022)
Homes Listed for Sale
Pending Home Sales:
The number of homes placed under contract is down by 16.3% when compared to March 2021. This indicates that sales next month may also be down, especially now with rates on the rise, as contracts accepted is correlated to future closed sales.
- 2022: 7,862
- 2021: 9,389
- 2020: 7,807
Price changes decreased by 0.5% year over year. Sellers are still able to name their price relatively speaking. If you are a seller who hasn’t been able to sell within a few weeks and it is being marketed properly, the price is the first thing to consider adjusting especially now that rates are rising and affordability is being reduced for buyers
- 2022: 407
- 2021: 409
- 2020: 513
New Hampshire Home Sales Down 17.6%
- After seeing a historic market over the last few years, everyone wants to know – when will this market change? The simple answer is that the change has already begun!
- Mortgage rates have rested near or over 5% over the past few weeks which diminishes buying power and will start to lessen frenzied buyer demand. Buyers should make sure their preapprovals are up to date!
- Inventory remains historically low and this will keep demand and prices high for the time being despite a lessening of buyer demand with increased rates.
- Listings are still down significantly year over year, so sellers who are thinking about entering the market should act soon. Don’t be a “want-to-be-seller” this year; gather the facts and prepare your home to list!
Single family, condos, and multi-family home sales have all decreased when compared to March 2021.
- Single families: 1,050 (2021) | 814 (2022)
- Condominiums: 372 (2021) | 367 (2022)
- Multi-families: 124 (2021) | 93 (2022)
Prices overall have continued to increase, now up 26.4% to $496,830 compared to March 2021. Prices increased in every category.
- Single families: $424,210 (2021) | $530,251 (2022)
- Condominiums: $299,473 (2021) | $381,493 (2022)
- Multi-families: $409,962 (2021) | $659,463 (2022)
As you can see in MARealEstateUpdates.com and NHRealEstateUpdates.com, our pages monitoring the progress of the market, the market is trying to catch up to where it would have been had COVID not put a massive wrench in the works, but it’s not quite there yet.
Data provided by Warren Group & MLS PIN for MA, and by NEREN for NH then compared to the prior year.