If you haven’t realized it yet, we’re in a seller’s market right now. Prices are continuing to increase, homes are selling for above asking price, and sellers basically have their pick of buyers. What does the Somerville MA seller’s market mean for home buyers?
Buying Will Take Longer
With low inventory and lots of competition, it takes longer to find a home in this type of market. It’s basically a waiting game. Lots of buyers are monitoring the market, and when a new home gets listed, they all swarm to it. With so few homes and so many buyers, it will generally take a lot longer for home buyers to actually find a home to purchase.
There Is Less Time to Decide
With the amount of competition for new listings, buyers really don’t have much time to think about things. Showings normally begin at the open house. Offer deadlines are then a couple of days later. Buyers can’t really sit around for weeks as they think things over or wait to compare the home to others. With so little time, buyers need to be prepared. They need to have their pre-approval in-hand and understand what they can afford. They need to know what they’re looking for in a home and be ready to act when they see it. Time is truly of the essence in this market.
Buyers Must Adjust Their Price Range
Ask your real estate agent for a comparison of list prices to sale prices. In markets like Somerville, you’ll see that many homes are selling for above list price. In fact, they’re likely selling for a significant amount above list price. Home buyers looking at properties already priced at their maximum pre-approval amount will have little opportunity to compete for listings. Instead, buyers may need to look in lower price ranges, with the expectation that the sale price will be much higher.
More on the Somerville MA Seller’s Market
Home prices in Somerville MA are continuing to rise, as evident in the 1st quarter market statistics. Buyers looking to compete in this market need to make their offer stand out. Working with an experienced buyer’s agent will help you develop an offer strategy that improves your chances for success. If you’re not already working with an agent, give us a call. We would be happy to refer you to one!