The buzz in Needham real estate this week is the incredible lack of housing inventory. All the brokers are talking about the fact there are a mere 60 single family homes available in Needham with 31 of them priced over $1 million.
If you go back to my earlier post about absorption rates, youâ€™ll remember that anything under a six month supply is considered a sellerâ€™s market.Â Absorption rates measure the pace of how many houses sold in the last year and compares that to how many are currently on the market. Right now the inventory sits at about one month for houses priced between $300,000 and $1 million, with the exception of the $800,000 price band which is at a three month absorption rate. Clearly a strong sellerâ€™s market in Needham as I write this. For houses over $1 million, there is a five month supply of homes. These high end homes have finally started moving steadily off the market in the last several weeks. So although high end homes are moving more slowly, itâ€™s still a sellerâ€™s market across the board in Needham real estate.
Normally this low inventory wouldnâ€™t be too surprising considering the time of year, but the other side of the story is the sheer number of buyers circulating out there. Itâ€™s difficult to quantify the numbers, but anecdotally I can tell you that open houses have been extremely busy, even as the holidays are upon us. My colleagues report buyers itching to see new listings where there are none and I am finding the same thing. If this apparent trend holds, and barring a national emergency in the next few months, the spring market in Needham is going to be booming and likely to start as early as January.Â I envision bidding wars and rising prices. Time will tell.