2021 has brought significant changes in the real estate market in Massachusetts. The state’s housing market has reached a fever pitch and became a fierce marketplace, especially for anxious homebuyers.
Compared to previous years, home values are substantially higher, and many of these properties are being sold on the same day they are listed. Even if the housing market shows no indications of cooling down, several home buyers are still hoping for their offers to get accepted.
If you are considering buying a house in Massachusetts this year, here are some factors you need to consider.
There are more buyers but few properties listed on the market
One of the reasons houses are being sold for record-breaking prices is the low inventory of properties for sale. A report made by the Massachusetts Association of Realtors shows that the month supply of inventory decreased 53.6% for condominium units and 57.1% for single-family houses.
With the shortage of homes for sale, competition has increased, causing the prices to go up. Due to the increase, many homebuyers are being forced to the sidelines and wait for another quality listing to emerge.
However, it is essential to note that even with the low inventory and high competition, house prices in Massachusetts are still expected to increase.
Many homebuyers are willing to waive inspections
Due to the lack of inventory, several homebuyers became more aggressive and are willing to waive contingencies and inspections just to win a bidding war. They are also competing for homes that are listed well over their asking prices.
In addition, some competitive buyers who want to have a home inspection are even raising their offers so they can have a home inspection. However, several experts are advising homebuyers against it as it could lead to several costly issues in the long run.
Several buyers are buying houses in the suburbs
Several reports indicated that many homebuyers who were once looking for a place in the city are now looking for a home in the suburbs.
This change could be attributed to the fact that many of them are currently working from home, so they don’t need to worry about commuting or being close to their workplaces. Single-family homes are reportedly being sold almost as quickly as they are placed on the market.
The condominium market is also thriving
If you prefer city living, you also need to be competitive with your offer. The median price of a condominium in the state increased compared to last year, and closed sales for condominium properties increased by 60.4%.
It is safe to say that the condominium market is active again after being considerably affected last year. Based on reports, some of the competitive cities in Massachusetts include Westford, Belmont, Hudson, Ashland, Arlington, Acton, Framingham, and Holliston. While some of the metros with the fastest-growing sale price include Winchester, Marshfield. Maynard, Brewster, Swampscott, and Sudbury. The housing market in Massachusetts has never been this competitive. Housing prices have surged across the state, and it doesn’t show that it will decrease or slow down anytime soon.
If you are a potential Massachusetts homebuyer, it is important that you are aware of these trends so that you can create a strategic and competitive house buying plan.