The news is full of reports saying that February and March were ugly for real estate. They were. But the news reports are missing something.
Over the past few weeks, Four Columns Realty has seen a sharp increase in the number of potential buyers contacting us in person and through our web site. From what we are hearing, we're not alone. March is in the news, but March is so last month.
As news reporters dwell on recent ills, they overlook the pent-up housing demand that's starting to surface. Life goes on, even in a housing slump. Buyers with expanding families need bigger houses. Buyers with grown-up children want smaller houses. You can only make do for so long.
Fewer Houses For Sale
While the new wave of buyers is finding plenty of houses to choose from, the number of single-family homes on the market here has begun to turn downward after several rising years.
6 months ago, there were 360 single-family homes for sale in the North Quabbin Region, which includes Orange, Athol, Erving, New Salem, Petersham, Phillipston, Royalston, Wendell and Warwick. Today, there are 315 single-family homes for sale in the North Quabbin Region, a drop of 12.5%, according to information supplied to and compiled by the MLS Property Information Network, Inc.
In all of Massachusetts, there were 33,173 single-family homes for sale 6 months ago. Today there are 28,184, a drop of 15%, again according to information supplied to and compiled by the MLS Property Information Network, Inc.
You might figure that this is happening all over the country. But it isn't. A recent Wall Street Journal survey found that the number of houses for sale is still going up in 23 of 28 major metro areas. In 4 of the other 5, the number fell by less than 5%.
In Boston - alone among all 28 metro areas studied - the number of houses for sale fell more than 10% from a year ago. Although this year-over-year statistic is not as dramatic as the drop over the past 6 months, it's still significant.
More Buyers, Less Sellers
This spring we're seeing more potential buyers and less sellers. That's the reality of today's housing market in the North Quabbin Region and throughout Massachusetts. It's a story the news media has not yet caught up with.
The rule of supply and demand suggests that housing prices could start rising again. Will they? Probably not for a while. There are too many negatives out there.
Although the steepest part of the slide in North Quabbin Region real estate prices appears over, the most likely scenario has prices flattening out this spring and staying flat this summer.
If you're thinking about buying, you should start looking at some of the bargains out there now. If you're thinking about selling, you can find a buyer now if you prepare properly and avoid overpricing your house.
Both buyers and sellers need to be smart about their next moves. But now could be the right time to jump in the game.
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