With the increasing prices in homes throughout Massachusetts over the past few years, buyers have sought property in markets with more accessible price points making real estate activity soar in Worcester and Leominster.
In February of this year, inventory increased in all major Massachusetts real estate markets except for Worcester- not because it wasn’t there, but because the homes were selling as fast as they were listed. The Worcester market has been on the rise for a while, and buyers are very aware of that. The price is right and that the improvements to downtown are continually drawing more buyers to the area. Boston area real estate has priced many buyers out of their budget, so they’re moving further out to get more for their money.
In July, the trend in Worcester continued as the inventory notably plummeted when compared to the same time in 2018. Plummeting inventory can be misconstrued as a sign that the market isn’t performing, but in this set of circumstances as mentioned before, buyers were consuming every listing as soon as it became available; the Pac-Man effect.
Decreasing interest rates earlier this year also increased buyer affordability which gave the market a push in the right direction.
When supply isn’t keeping up with demand, you know you have a hot market which is exactly what’s going on in Worcester. Leominster is experiencing a similar market push right now as well. As you can see in the graphics below, October 2019 sales and prices are up much higher in both cities that what Massachusetts as a whole experienced when compared to October 2018.
Buyers want value. They’ll pay if they believe what they’re getting is a good deal, and with values steadily increasing in these markets, getting in now means they’re going to make out in the end. Buying now and then selling in five years after prices have continually increased means they’re going to be able to sell for a significant profit when the time comes. Worcester and Leominster, and areas that are performing similarly, are exactly what the real estate market is all about: making a good investment.