Somerville MA Inventory Shortage

listing1There is low home inventory in many areas in and around Boston. Supply is not accommodating demand. Purchasing a home in this market is definitely different than what you may have experienced just a few years ago. The following is information on how the Somerville MA inventory shortage affects real estate consumers.

Greater Home Buyer Competition

Insufficient inventory creates a competitive market for home buyers. Properties newly listed will naturally attract lots of activity. You may notice this based on the crowds at open houses in Somerville MA. Listings are still going under agreement quickly and with competing offers in many cases. This competition results in most homes selling for above asking price.

Buyers in this market need to be ready to act. This means getting your ducks in order, including a solid pre-approval letter that you can submit with an offer. Sellers are simply not willing to accept offers without evidence of a pre-approval. Also, after visiting a property, you must decide pretty quickly if you’d like to make an offer. If you wait, it may be too late. Fortunately, many homes have specific dates on which offers will be reviewed, so you may know ahead of time just how much time you have to think things over. When you do make an offer, you may want to go in with a really good one right off the bat. You may not have another opportunity to bid on that property if there are competing bids. Keep in mind that in most cases now, there is little room to negotiate a lower price unless the property has been on the market for an unusually long period of time and lacks competing bids.

An Ideal Time to Sell

It’s a great time to sell if you’re a Somerville MA homeowner. You will probably be able to sell quickly and for a great price. However, this all begins with the proper marketing strategy. Be careful not to overprice your home. That does not usually lead to a higher selling price. Starting at a reasonable price will generate more interest and offers,…and result in a higher selling price in the end.

If you need to both sell and buy, it will be difficult to do that right now. Although you may be able to promptly get your existing home under agreement, finding a new home could take more time given the low inventory. Some buyers may be willing to give you some time to secure suitable housing. If you cannot find a home to purchase in time, interim housing may be the solution.

How The Somerville MA Inventory Shortage Affects Real Estate Consumers

In general, how the Somerville MA inventory shortage affects real estate consumers is with a shorter selling time, longer buying time frame, and higher prices on both sides. As a seller, the higher prices are great. As a buyer, you may not be thrilled with having to purchase at a higher price point. Be sure to stay informed on the market and set realistic goals when it comes to both price and timing. Also, using a local real estate agent can be a tremendous help. Your agent can provide valuable guidance and information throughout the process.

If you do not already have an agent, we would be happy to refer one to you. Also, once you find your next home, you can get a free MA homeowners insurance quote right on our website. Keep in mind that it will save you money to combine your auto and homeowners insurance,…give us a call for more information on that and other discounts for which you may qualify!