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.
Highlights
- Mortgage rates spiked to 4.72% last week, and by the end of the week reached 4.95%. The lower rates over the last 2 years have kept homes more affordable, but now increased rates will diminish buying power. significantly. Buyers should be looking to buy as soon as possible to get more house, for less, as rates are expected to continue to climb and show no signs of slowing down.
- With rates increasing, buyers that received preapprovals in January/February will need to get reapproved to adjust for these new rates. Sellers, be cognizant of the approval dates from potential buyers.
- The higher interest rates may decrease the number of buyers which may help increase inventory which still remains at historically low levels.
- As expected, the low supply and high demand continues to push average prices up.
- Increased demand has resurrected bidding wars, cash offers, multiple offers, and homes flying off the market. Despite this, sellers should not get overzealous with the price when listing their home. Especially at this current point in the market, if your home isn’t selling, reevaluate the price.
- Despite the high demand, home sales are down due to listings being down. You can’t buy what isn’t for sale. The lack of listings is holding up potential sellers from listing their own homes as they know they’ll sell quickly and fear they won’t have anywhere to go.
- Don’t be a “Want-to-be-Seller” in 2022, there are ways to be prepared and informed about the market and what is to come so that you can feel confident putting your home on the market.
Massachusetts Home Sales Down 13.6%
Sales are down 13.6 percent year over year with February 2022 at 4,337 over 5,017 last February. Single family and condo sales have dropped year over year, but multi-family sales are up by 2.3%.
- Single families: 3,034 (2021) | 2,593 (2022)
- Condominiums: 1,463 (2021) | 1,212 (2022)
- Multi-families: 520 (2021) | 532 (2022)
Average prices have continued their rise with another year over year increase of 11.4%, now at $583,486. Prices increased in every category.
- Single families: $606,981 (2021) | $646,844 (2022)
- Condominiums: $398,319 (2021) | $477,622 (2022)
- Multi-families: $529,544 (2021) | $601,951 (2022)
Homes Listed for Sale
There were 5.1% fewer listings this year compared to last February 2021 which illustrates how the beginning of this year’s market continues to be very competitive for buyers as sellers remain hesitant to list.
- 2022 – 5,575
- 2021 – 5,876
- 2020 – 7,442
Pending Home Sales:
The number of homes placed under contract is down by 11.9% when compared to February 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 – 5,497
- 2021 – 6,238
- 2020 – 6,941
Price Changes
Price changes decreased by 11.9% 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.
- 2022 – 208
- 2021 – 236
- 2020 – 328
New Hampshire Home Sales Down 20.3%
Highlights
- With mortgage rates continuing their ascent they are now hovering at close to 5%. Buyers should not wait to get into this market as higher interest rates diminish buying power, and prices show no sign of decreasing. The sooner buyers enter this market, the better off they will be in terms of price.
- Inventory remains historically low, but the low supply may start to build as some buyers pull out of the search with increasing rates.
- Sellers, don’t be a “want-to-be-seller” this year, gather the facts and prepare your home to list.
- Buyers, if you enter this market informed and prepared, it will be extremely beneficial and get you into the home you want!
Single family and condos sales have decreased by 20.5% and 25.6%, respectively. However, multi-family home sales have increased by 1.2% in NH when compared to February 2021.
- Single families: 855 (2021) | 680 (2022)
- Condominiums: 320 (2021) | 238 (2022)
- Multi-families: 83 (2021) | 84 (2022)
Prices overall have continued to increase, now up 19.7% to $444,496 compared to February 2021. Prices increased in every category.
- Single families: $399,154 (2021) | $486,186 (2022)
- Condominiums: $301,743 (2021) | $336,521 (2022)
- Multi-families: $353,916 (2021) | $412,925 (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.