Comparison to this time last year – Jan 7 2021 / Jan 2022
I am showing Newton numbers since that is where we sell most, but this is reflective of the Greater Boston market overall. Those numbers are 4,775 properties on today compared to 7.066 this time last year.
As you can see, there is about half the inventory on the market as this time last year. So we are off to a slow start. It appears this will be tighter year of inventory and Buyers will still be fighting over properties.
For Sellers, this does not mean that properties can be over priced, particularly if the property needs work. Far more of the sales are happening in new construction and renovated properties. I’ve talked about this in previous newsletters – this is basically because low interest rates make it possible for Buyers to spend more on a home, but does not mean they have cash in the bank to fix a house up after paying a large down payment. Working outside the home means they do not have the bandwidth to manage contractors. If Buyers are working from home, they can’t have construction going on in their homes.
Builders and renovators will buy homes that need work, particularly if they are multi-family or on large lots. But they are not going to overpay as it is a business for them. The numbers need to make sense for them. We work with many builders so if you have a home you want to sell off-market, feel free to reach out to us.
Market Snapshot – Newton