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The New Normal in Western MA Real Estate for 2021
| As we head towards a new year many people are wondering what the local real estate market will look like in 2021. Take a read here and let me know if you have any questions or real estate needs! |
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| The New Normal: A Strong Housing Market Expected to Continue into 2021Most of us would have expected the housing market to suffer from circumstances like a once-in-a-hundred-years pandemic and historic inventory shortages. But, rather than a slowdown, we are continuing to experience a surprisingly robust real estate market across the country. And experts estimate that these conditions are likely to last well into the new year.Market conditions like fewer available listings, changing criteria for desired homes, and record-low mortgage rates are changing the way people buy and sell homes, most likely in a lasting way. But this sustained activity, even in the uncertainty that is 2020, proves that our country still views real estate as a sound investment.The only question now is how you can take advantage of the housing market’s “new normal.” |
| FEWER LISTINGS EQUALS A SELLER’S MARKETInventory (e.g., number of homes for sale) has been dwindling in the country’s top 100 metro markets since early 2020. It is currently about 1.47 million units, which is a decline of 19.2% from one year ago—and the lowest point since 1982.Fewer listings creates an advantageous housing market for sellers right now because buyers have to act fast to snap up available homes. As a result, most properties only stay on the market for about 21 days before they are sold.And thanks to tough competition for homes (often resulting in bidding wars between buyers), sellers are enjoying higher net returns on their listings. The nationwide median home price in September rose to $311,800, which translates to about $40,000 (15%) more than just a year ago. |
| LOW MORTGAGE RATES, BIGGER PLAYING FIELD BENEFIT BUYERSPeople used to base their next home purchase on commute times and school districts. Now, thanks to the pandemic shifting the locus of jobs and work, they are free to consider how and where they truly want to live. Surveys show that quieter neighborhoods, home offices, updated kitchens, and access to the great outdoors are preferred.The search for these criteria is driving residents out of densely populated metropolitan areas and into the suburbs, which opens more inventory possibilities than buyers could consider pre-pandemic.Now that 30-year fixed-rate mortgage rates dropped to 2.81% in mid-October, buyers are afforded the opportunity to buy nearly $32,000 more home than they could one year ago. Similarly, a 15-year fixed-rate mortgage can be had for as low as 2.35% compared to 3.15% a year ago. So even though home prices are high now, it’s more affordable to buy a home now than it was last year. |
| RECORD-SETTING YEAR FOR HOME SALES IS JUST THE BEGINNINGDespite the seemingly adverse buyer conditions, 2020 experienced a 14-year high number of home sales, NAR reports. Existing-home sales (including single-family homes, townhomes, condominiums and co-ops) rose 9.4% across the nation in September to a seasonally adjusted annual rate of 6.54 million. That’s a 21% increase from a year ago!All of the aforementioned factors indicate that the housing market is poised to remain strong as we head into the new year. And experts believe they could “buoy the housing market for years to come.” |
| REAL ESTATE IS A SAFE BET Today’s housing market is competitive and strong, which makes it a sound investment for your future. If you’re considering buying or selling a home before the new year or in early 2021, contact us now to schedule a free consultation. |
| If you have any questions please don’t hesitate to call or text 413-575-3611! |
Home Seller’s Dilemma in Western Massachusetts
I am sure you keep hearing the news that it is a seller’s market in Western Massachusetts…”It’s a great time to sell!” is being shouted by every REALTOR everywhere.
You may be thinking that you would like to sell and reap the rewards of this boom, BUT….. you are super hesitant because you are looking online and there doesn’t seem to be any homes on the market for you to buy.
This is the SELLER’S DILEMMA.
You think to yourself: I want to sell and get top dollar, but I don’t want to be homeless SO I guess we need to stay put until something comes on the market.
Here is the problem with that plan: When that something comes on the market, you still have a house to sell which makes your offer less appealing to the seller of the house you want. Other people are undoubtedly going to be interested in the house you want, also, so now you are competing with an albatross of a house sale contingency.
Seems like an unsolveable problem, doesn’t it?
WELL I CAN SOLVE IT.
What would you say if I told you there is a way we can get your home on the market NOW while inventory is low and you are likely to get a lot of interest and potentially multiple offers on your current home while also giving you the opportunity to have some time to find the next home of your dreams? What? You don’t believe me? We can do it!
OK so here is the plan. Inventory is at a super low status right now. As of the writing of this post there are only 43 single family homes priced $200,000-$400,000 for sale in Westfield, Southwick and Agawam combined. This number is ridiculously low.
What does that mean? That means RIGHT NOW is when to get your house on the market – little competition creates a supply and demand situation that you can reap the rewards on.
Now onto the second part of your concerns: where are you going? Some people opt to move into temporary housing with family or renting. Maybe that isn’t a good fit for you, however. If you don’t have somewhere to crash in between homes then let’s make your sale SUBJECT TO SELLER FINDING SUITABLE HOUSING.
What does that mean? That means we can get a buyer locked in on the sale of your house while inventory is low and we can grab a high sales price and also, we build in time for you to find the next home. Now, most people think that the traditional “spring market” starts in April and they are waiting to put their homes on the market. Come April we will see a lot more homes being listed, giving you the opportunity to find your next home AFTER you already have a buyer in place.
That makes you a more attractive buyer. You are a step ahead of the competition which will gain you negotiating power on that sale. WIN/WIN.
So you see….you don’t have to worry that you may be made homeless if you put your house on the market now. You will get a jump on everyone else and reap the financial benefits.
Want to talk it over? Let’s get together! After 31 years in this business I have LOADS of strategies to share with you!
Lesley Lambert, Western MA REALTOR with Park Square Realty 413-575-3611
Real Estate Market Report for Westfield, MA February 2020
Are you curious about the real estate market in Westfield, MA? This report will give you all the information you need to understand what is happening with real estate in Westfield, MA.
If you have questions or would like a real estate report specific to your home, please reach out!
Lesley Lambert, Westfield REALTOR with Park Square Realty 413-575-3611 or realestate.lesleylambert@gmail.com
Westfield, MA Real Estate market report February 2020 from Lesley Lambert
Real Estate Specializing in the 50+ Year Old Client
Find your ideal home with my help. I’m your SRES®. Every transition is an opportunity, regardless of your stage in life. With the right preparation, a new home can provide the fresh start and continual enjoyment you’ve been working toward. By partnering with an SRES® like me during your new home search, you’ll gain the help and expertise of a REALTOR® specialized in meeting the needs of home buyers and sellers ages 50+. I have both the education and real estate experience to serve as your trusted advisor through the unique financial and lifestyle transitions involved in relocating or selling your family home.
Read more here:
Lesley Lambert, Senior Real Estate Specialist REALTOR in Western Massachusetts from Lesley Lambert
If you are anticipating making a real estate transition and would like to work with someone who understands your unique needs, then give me a call! Lesley Lambert, 413-575-3611
