Sellers Are Facing A Tougher Crowd And May Need To Adjust Their Own Expectations
A report from the Boston Globe in Massachusetts. "There are growing signs that Boston’s red-hot housing market may be cooling off, at least by a few degrees, a moderation that could be good news for would-be buyers. It’s a trend that has been in the making for several months. 'We’ve seen a steady softening of sales since Labor Day,' said Marie Presti, president of the Greater Boston Association of Realtors. 'The good news for home buyers is there is less competition when making an offer, more time to shop for homes, and more opportunity to get into a property following a recent influx of new listings coming onto the market.'"
"Figures from the trade group show the median sale price of a single-family home in Greater Boston in October climbed 7.1 percent from the same month last year, to $605,000. But that figure has dipped over the last few months, an indication that the market may have peaked, Presti said."
"Meanwhile, the number of sales was down 4.4 percent, and has fallen 2.7 percent through the first 10 months of the year. Crucially, though, the number of homes on the market is on the rise, and new listings in October jumped by 20 percent compared with this time last year."
"'If that number continues to climb, our market will be even more balanced,' Presti said."
The Hartford Courant in Connecticut. "In some years, the home sale market in Connecticut stages a bit of a burst in the fall — not as strong as the spring — that can end the year on an upbeat note."
"A report Wednesday from The Warren Group showed that the market does not appear to be shaping up for a robust autumn. In October, sales of both single-family houses and condominiums statewide registered year-over-year declines and unlike previous months, prices did not register gains."
"Single-family house sales declined for the third month in a row. Real estate agents say houses are selling, but only those that are priced right for a market still trying to recover from the last recession. Buyers generally are not willing to overpay and are looking for homes that have been updated or, if work is needed, priced so buyers can make renovations."
"Which county lagged the most in October in sales? New London. Sales of single-family houses plunged more than 14 percent, and the median sale price dropped 4.2 percent, to $229,900 from $240,000 for October 2017."
"Which county saw the steepest decline in median price in October? Windham. While sales of single-family houses fell a little under 2 percent, the median price fell 8 percent, to $182,000 from $197,900 for the same month a year ago."
From Forbes on California. "Mixed housing market news for Bay Area home buyers and sellers comes directly from the latest economic number crunching by Selma Hepp, chief economist at the San Francisco-based luxury brokerage, Pacific Union International/Compass."
"The main story, according to Hepp is about affordability. Despite a 19 percent year-over-year increase in affordable inventory, buyers aren’t falling over each other making multiple offers and snapping up properties. Buyers of homes priced below $1 million are restrained, with the fewest number of homes selling for more than asking price since January 2017."
"'I think the most striking insight is how much the affordable home buyers cooled off, even in light of more inventory across the region. Early-year price growth and interest rates have really taken a bite out of their budget,' Hepp explains. 'I was a little surprised to see such a decline given the continued strength in the local economy and job growth. I think we may still see some activity among these buyers as they notice more inventory and get used to the price shock.'"
"'Sales in San Francisco are better than the East Bay, Marin or Santa Clara (counties) but we’ve seen a 10% drop on re-sales lately in higher priced homes. I just sold a home in the Marina for $7.2 million that the seller paid $ 8 million for a few years ago,' confides Nina Hatvany, of Pacific International/Compass."
"A red flag to the Bay Area’s market strength is that inventory grew by 21 percent year over year, with almost half of the increase, or more than 1,100 homes being priced below $1 million. Hepp also points to price cuts. 'There were more price reductions across the region at all price ranges, with lower-priced homes posting the largest share of reductions in the past three years.'"
"Hepp’s bottom line advice to sellers: 'They are facing a tougher crowd and may need to adjust their own expectations.'"