Home Buying in Boston>Question Details

newenglandho…, Home Buyer in Seekonk, MA

Is it now a seller's market in southern New England?

Asked by newenglandhomebuyer, Seekonk, MA Thu Feb 21, 2013

We've been house-hunting for several weeks now, and are shocked that homes are getting multiple offers and getting bought up within a month or less of listing. Could we be heading toward another housing bubble, with a low inventory of homes and a high demand for them? Makes me nervous! Thanks.

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Heath Coker’s answer
Lack of inventory and pent up demand is causing a change rom the buyers' market that has been around for the last few years.
Location, price point, condition all still factor heavily.

Of course choosing a local real estate pro can help you save a lot of time.
(Not me, I'm on the Cape, but I can help you choose a local pro when you are ready.)


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0 votes Thank Flag Link Mon Feb 25, 2013
BEST ANSWER
Hello,

I have been hearing this a lot from buyers. I do the best I can to prepare my clients for what's going on out there in the marketplace, but there's nothing that drives the point home quite like experiencing it for yourself. I know it's frustrating, just hang in there.

The housing market in Boston especially, and New England in general didn't get hit as hard when the bubble burst as the rest of the country did. The housing recovery started around here a couple of years ago, but the national housing market is just starting its return to normalcy. Because of that time-lag things are going to heat up around here and stay that way for some time before banks see what's going on nationally and start to raise interest rates. That will put some downward pressure on prices, but I don't expect to see it any time soon.

There are techniques that you and your agent can employ to get your offer through a competitive process. As a buyers' agent, having a competitive bidding situation is also frustrating because I like to negotiate the best possible terms for my clients. In a multiple-offer situation you are competing against other buyers for the prize of actually buying the house at all rather than negotiating against a seller to get yourself a good deal. Expect a little bit of buyer's remorse when you do get a house, but keep in mind that home-ownership has benefits that go beyond what you pay for the place initially. If the market continues to grow any "overpayment" you get hit with will be erased in the long-run by an increase in value.

Best of luck! It's not easy, but it's still worth doing!
3 votes Thank Flag Link Thu Feb 21, 2013
Excellent response.
Flag Tue Feb 26, 2013
well said
Flag Fri Feb 22, 2013
I don't think we will see a "bubble" but if the property is priced right there is a pent up demand by buyers who have been waiting for the bottom to drop...we are well off the bottom of the market and heading into the end of market favoring the seller...
The time to buy is now !
Let me know if I can help..we have some great agents in your area..
Val
1 vote Thank Flag Link Sun Feb 24, 2013
Helpful update, thank you Valerie!
Flag Wed Feb 27, 2013
In the Northern region of Massachusetts it definitely seems to be heading into a Sellers Market with the low inventory and multiple offers coming on well priced homes and properties..
Don't be too anxious sellers to raise the pricing on your home , we are only seeing the multiple offers coming in on properties that are priced correctly from start date ..
Too many times a seller will wonder "is my property underpriced ?" when they see more than one offer early in the marketing period...NO, it is priced right..
You will see the most activity on a new listing in the first 10 days ...grab the attention of the buyers with a fair market value price...not what you "need" to get out of the property , that has nothing to do with fair market value and the buyers KNOW ...
Happy Selling and heres to a great spring market !
1 vote Thank Flag Link Sun Feb 24, 2013
Yes properties listed at the right prices are flying of the shelves, but you can still find good properties if you are determined. I believe that sellers are realizing that the trends are changing and many sellers are going to be listing their properties in the spring time. Eventually it should even out but I definitely recommend to keep a daily watch on the areas you are searching for and have your buyers agent keep you informed once a property you like hits the market. Just make sure that if you see something you like that you give it your best offer from the start so you do not loose out in an opportunity.
1 vote Thank Flag Link Sun Feb 24, 2013
Hi Neighbor,

Same here in the Berkshires... Low Inventory, Multiple Offers, and Bidding Wars on attractive properties that are priced attractively. For those buyers taking out a mortgage, a pre-approval is a must (to be submitted with any offer). A good buyer's agent will keep you informed of new listings and price reductions on attractive properties. If you love a property, trust your realtor, and make an attractive offer. I have found, that generally speaking, things always work out the way they should.

Good luck.

Tom Lynch
Associate Broker, Massachusetts, New York, and Connecticut
Berkshire Property Agents
12 Railroad Street
Great Barrington, Massachusetts 01230
http://www.berkshirepropertyagents.com/
1 vote Thank Flag Link Thu Feb 21, 2013
Hi NewEnglandHomeBuyer,

You've read the current market activity correctly.

While this flurry of activity may be a thing of beauty for many, it's also some cause for concern. Bidding wars can be the cause of inflated home prices. That said we need to keep in mind that we have a way to go in terms making up for rock-bottom prices in recent years.

More sellers are being enticed to put their homes on the market, so that will address the low inventory concerns. And, my best advice for home buyers is to not get caught up in the "auction fever" of multiple bids. Know exactly what you're comfortable paying for a home and walk away when the offers start to go beyond your comfort zone.

I offer a free "Home Buying 101" In-Home Tutorial for all my first-time home buyers where I cover how to deal with current market trends. If you're interested in taking the class, drop me a line at Michael.Pallares@nemoves.com.

And good luck with your home search!

Michael Pallares, Realtor, ABR
Coldwell Banker Residential Brokerage
(617) 899-3162
1 vote Thank Flag Link Thu Feb 21, 2013
We have used Michael several times and he is the best around... I have referred him to many family and friends who have used him as well. He knows his stuff!
Flag Thu Feb 21, 2013
Just be patient and be ready to act.
1 vote Thank Flag Link Thu Feb 21, 2013
It was "multiple offers" on homes for all of 2012 and 2013 seems like it will be even better for sellers. Buy now while the snow is on the ground. Once spring hits, get out your checkbook....

William L. (Bill) Meissner, Jr.
President - M & C Metrowest Realty, Ltd.
MBA (Suffolk University), BS Accounting (Bentley University) & Cath. Mem. HS
Accredited Buyer's Representative (ABR) & e-PRO Realtor
Direct line: 781-444-6036
Text: 339-225-1737
Web: http://www.BillMhomes.com
Email: billmice@aol.com
1 vote Thank Flag Link Thu Feb 21, 2013
It has been a sellers market in the Greater Boston Area since last Jan. Prices are on the rise, interest rates are down and inventory is slim. It is a tough market to buy in so you better partner with the right Realtor to help with your search. Make sure they are keyed into their local market and working for you.
1 vote Thank Flag Link Thu Feb 21, 2013
I find in our market it depends on price range but for certain ranges (mainly lower), yes, it is definitely turning the corner to be a sellers market when a home is priced competitively and is considered a 'good' buy in its range.
0 votes Thank Flag Link Fri Feb 22, 2013
Yes, the real estate climate has been like this since the start of last year! Inventory is slim but many sellers are understanding this is a good time to list their properties so that should aid in boosting the number of listings especially as we get into Spring. Properties are selling for much more than the comps suggest too due to high demand. Just be on the ball and ready to make a decision quickly!

Meri Galstian
Boston Luxury Residential
0 votes Thank Flag Link Thu Feb 21, 2013
Thank you, everyone. People keep telling us to "wait until the spring" because there will be more of a selection, but I am afraid that prices will go up even further if we don't act in the next 6 weeks or so.
0 votes Thank Flag Link Thu Feb 21, 2013
Thanks - I must have been asleep at the wheel! I'm in the Seekonk area. All we kept hearing was, "It's a great time to buy!" And now we're having trouble finding a suitable home because of so much buyer competition.
0 votes Thank Flag Link Thu Feb 21, 2013
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