I am constantly asked by friends and acquaintances, Hows the Real Estate Market?
Right now I am feeling cautiously optimistic about the state of the real estate market. I believe we are starting to see the bottom of the real estate downturn or even a slight up tick in many communities. Remember, the real estate market is highly regionalized and can vary from region to region and even town to town.
What am I seeing in the Real Estate Market?
Housing Inventory- In many communities I am seeing the inventory dry up. Meaning there are less houses on the market. Less house creates competition for the home buyer pool in a given price range/ set of criteria.
Days on Market– Days on market are starting to decline. As the houses spend less time on the market and you see a downward trend, this can be a leading indicator of where the market is heading.
Multiple Offers– More and more homes are getting into competitive bidding wars. Multiple offers are the best possible situation for sellers and signify that buyers are competing with each other in the real estate market place.
Increased Inquiries– Lately I have noticed I am getting more and more phone calls from buyers. Increased buyer traffic with declining inventory creates more buyers competing for the same home. Competition creates higher offers!!
Low Interest Rates– Low interest rates are still hovering around all time lows. Buying a home with low interest rates makes owning a home an attractive option for many.
Increasing Rents– As rents increase, it makes owning the same property a cheaper alternative than renting. Owning a home now becomes a no brainer financial decision.
Investment Properties are Hot– Investors are snatching up rental properties. Multi-family homes now make sense for investors to create a positive cash flow and a return on their money.
Zillow Real Estate Market Data–
Note that Essex and Middlesex County real estate markets are seeing a slight up tick while Worcestor County is still in a downturn. Again I want to point out that real estate markets are highly regionalized. While Essex and Middlesex Counties are seeing a slight rise in home prices there are still communities in these counties that are experiencing a downturn. Consult your local real estate agent to find out what is happening in your community.
Put this all together and it is signifying the real estate market is in for a change. While no one has a crystal ball, the signs are there for a market turn around. Realize there are still many variables. I personally think that we will have a slow turn around with prices remaining very flat to a very slight appreciation for 3 or more years, before we get back to a real estate market of about 3% a year.
The signs are positive. If you have been feeling it is time to buy or sell, maybe its time to talk to your local real estate agent!!
This post was provided by Kevin Vitali of EXIT Group One Real Estate. If you have been thinking about buying or selling in Essex or Northern Middlsex County call Kevin at 978-360-0422 to see if now is the right opportunity for you.