With high interest rates and high demand for housing, home-buying season seems hopeful this spring. More home listings are coming on the market after a slow winter.
“We are starting to see more inventory on the market, and if enough inventory comes on the market to satisfy the demand, then prices will level off a little bit,” said Jack Attridge, a real estate agent for William Raveis.
With more than 35 years of expertise working in the Marblehead housing market, Attridge understands there is always an influx in inventory. However, he said it is still lower than pre-pandemic levels, which makes the demand for homes much stronger and results in an upward pressure on prices.
“Some sellers are a little bit more reluctant to give up their lower interest rates,” said Attridge. “We are seeing an increase in demand and limited supply because of some market factors, but there are always people moving.”
“For well-priced properties, we are seeing a lot of demand and, in most cases, multiple offers with properties exceeding the list price,” he added. “That’s pretty common in any metro area in the country,”
According to Attridge, over the last 12 months, 201 listings of single-family homes were sold in Marblehead. Last year, there were 194 listings and in 2021 there were 236.
Since the COVID-19 pandemic, the demand for real estate has increased, including for affordable housing, waterfront properties, home sales, and rentals. Interest rates rose from the 2 to 3 percent level to the 5 to 6 percent level.
The average sale price in 2022 for Marblehead homes was $1,207,395, with an average of $495 per square foot of living space.
On Monday, April 10, 12 single-family homes were listed for sale, which according to Attridge is “very low.” Last year, on the same day, there were five listings. In 2021 there were 16 listings.
In 2020, there were 39 listings in April, before the impacts of COVID-19 on the market were fully apparent.
Of those 12 listings, 10 of them are on the market for over $1 million.
“When a new listing comes out on the market and is priced smartly, it will sell quickly. Usually within the first week,” said Attridge.
Attridge does not see home listings getting back to pre-Covid numbers soon, “especially with the amount of available housing.”
With home prices still high, is it the right time to buy one?
“That’s a good question. If you bought a home last year and before, and you put that same property on the market right now, you will likely make more money on it,” Attridge said.
“It’s hard to say what might happen in the future, but based upon past performance real estate has always been a strong asset,” he added.
It’s unknown what will come on the market shortly but during this time of year, Attridge said the market starts to get moving.
“We are starting to see more inventory on the market, and if enough inventory comes on the market to satisfy the demand, then prices will level off a little bit,” he said.