Two words gang: seller’s market.
Last year, low inventory and even lower interest rates created a real estate market that heavily favored sellers. The annual average interest rate on a mortgage hovered around 3.98% — which means buyers could pay more for a house because they’re paying the bank less interest. Only problem was housing inventory in 02465 was down about 20% — so there were less homes to buy.
This created bidding wars. Lots of them. 105 homes sold in 2013 — 49 of them sold at or above asking price. 28 homes took less than 1 week to sell. The homes that didn’t sell at or above asking got 98% of their list price — so don’t feel bad for them.
The market was totally loco last year you guys. Like 2005 all over again. But what can we expect in 2014?
Probably more of the same. Inventory is still low. I expect rising interest rates are going to be a factor. Rates have risen nearly 1/2 point in the past few months. For West Newton buyers, that rate increase will mean an extra $200-300 each month on interest. May not seem like a lot, but that’s more money buyers are paying on interest — not the house.
As interest rates and inventory rise, the market will become a more level playing field for buyers & sellers. Until then, it’s a sellers market.
Some pics below of 86 Prince Street — the most expensive home sold in 02465 in 2013 ($3.905M).