October 2020 Housing Report
The Lamacchia Housing Report presents overall home sale statistics and highlights the average sale prices for single families, condominiums, and multi-family homes in Massachusetts and New Hampshire for October 2020 compared to October 2019. It also looks at other metrics in Massachusetts like Homes Listed for Sale, Homes Pending, and Price Adjustments made to active listings, as they are often the best indicators for predicting future trends in the market. This month’s report will be unlike years past due to the lingering effects of COVID and the massive amount of home sellers that didn’t list their homes in late March and early April when the lockdown first hit.
Massachusetts Home Sales Up 22.8%
Massachusetts sales are up by 1,843 sales, 22.8% over October 2019. Sales increased by 27% in single families, 16.8% in condos, and by 8.8% in multi-families. The significant increase in sales in October is a result of the delayed market swing into the buyer’s favor- buyers and sellers are still playing catch up when by now, October tends to be a little calmer but it’s still very busy, thanks to COVID.
Prices have increased again by 14.1%, $64,756 overall in Massachusetts compared to this time last year. All three categories increased in prices. Due to so many motivated buyers still out there and with such a tight supply of homes on the market, prices increase naturally with buyers outbidding one another.
Homes Listed for Sale:
The number of homes listed exhibited an increase which is a positive sign for buyers. There were an additional 939 homes listed in October 2020 over October 2019– a 10.1% increase. The belated fall swing into a buyer’s market never really happened fully but this increase in supply will hopefully make it a less competitive environment for buyers than it was in the summer and early fall.
Pending Home Sales:
Pending home sales are up by 11.3% over October 2019 which continues to prove that this market is still very active in a time when it starts to cool down. Homes are placed under agreement very quickly these days due to the high competition. So, even though homes listed are up, so are homes pending which is keeping the inventory very limited.
As you can see in the chart below, the percentage of homes going pending each week is higher this year than it has ever been. For the full report, visit MARealEstateUpdates.com.
Price changes (reductions) decreased by 18.7% over October 2019 which shows that buyers are willing to pay what sellers want- particularly if the house is priced well. This is typically the season for price adjustments because usually, it’s a buyer’s market, where there’s plenty of supply and sellers are the ones competing for the buyer’s interest. The delayed spring market has flipped the script and the need for price adjustments isn’t as prevalent this fall. If you are a seller, however, and are not getting almost immediate offers it’s likely that your price point is higher than it should be.
New Hampshire Home Sales Up 3.3%
New Hampshire exhibited an increase in sales and prices when compared to October 2019. Sales saw a 3.3% increase with 44 more sales. There was a slight decrease in sales in single families, but condos and multi-families increased. Prices increased by 18.9% in all three categories to $378,216.
It’s expected that the market isn’t going to calm down any time soon. Buyers are still motivated, mortgage rates are still very low, and COVID safety guidelines have made everyone feel more comfortable during the buying and selling process. The market is likely to be very active for the rest of the year, including through the holidays. If a sell/buy is in your future, your Realtor will help you devise a selling and buying timeline that works for you and your goals.
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.
Our COVID-19 Resource page is a tool designed to answer questions that homeowners, buyers, and sellers have about how all of this will impact their real estate goals. There are videos in which Anthony explains the market and how it’s being impacted, blog resources, news articles, and more. For those seeking information on what their mortgage companies expect and are willing to offer their borrowers during this time, we also created a COVID-19 Mortgage Resource page.