April showers bring May flowers, but did they also bring more homes to the market? Unfortunately, compared to last year, the answer was no. With the exception of Bedford, each of our office towns saw a decrease in the number of homes sold compared to April 2021. However things are looking more positive for May, with more homes available to buy in Westford (up 18%) and Winchester (up 42%) than the previous year. But for buyers, that might be where the good news ends, as prices continue to climb. Average sale price for single family homes was up almost 30% year on year in Acton and Concord. Bedford, Westford and Winchester also saw increases, while prices in Lexington remained static compared to the prior year. There’s also no let-up in the speed at which homes are selling – during April homes in Carlisle, Winchester and Bedford had an accepted offer in under a week, and the average days on market in Bedford and Westford was just 15. Hardly surprising then, with all that competition for homes, that the average sale price is still greater than the list price – by more than 20% in Carlisle and Acton.
So how long is this Seller’s Market set to continue? Whilst we can’t say for certain, all the signs are that a change is coming. Further increases in mortgage rates are predicted – an average 30-year fixed rate term is now well over 5% - which will in turn affect how much people can afford to borrow. The cost of living is also having an impact – gas prices are still up near $4 / gallon, supply shortages continue to affect the cost of groceries and utility expenses are also on the rise. Plus a poor-performing stock market has reduced the value of some investments, which could impact a buyer’s ability to put down a deposit on a home. While there is still a limited inventory of homes for sale, sellers are able to achieve the maximum value for their home – but hesitate for too long and you may find it’s the buyers who are in short supply.
If you are thinking about making a move, and want to know what your home is worth in today’s market, get in touch. Our experienced agents can give you a no-obligation market analysis, specific to your home, to help you decide if now is the right time. They can also advise you on what you might need to do to get your home ready for sale, and walk you through some of the many ways we market your home to the widest pool of potential buyers.
Ready to take the next step? Contact Barrett Sotheby’s International Realty today!