TODAY'S RATES
30 Yr Fixed - 6.61% - Down .51 since last week
15 Yr Fixed - 6.05% - Down .45
30 Yr Jumbo - 6.10% - Down .06
5/1 ARM - 6.25% - Down .50
30 Yr FHA - 6.27% - Down .41
MARKET INSIGHT
First and foremost: We are still in a seller's market.
In Boston, and across the state, we currently have about 3 months of inventory of homes for sale. A neutral market is considered around 6-7 months, and anything above 7 would be a buyer's market. We are a long way away from equilibrium, but there have been considerable strides, largely thanks to rates.
Rate volatility will continue.
No one knows for certain where rates will go next, but there have been indications that rates will go up before they go down. Again, safe to say that recent volatility will continue.
650 homes were listed last month in Boston; Listings down 9% YOY.
Just as predicted, October inventory saw a significant decrease from September, down 33%. History tells us that inventory will continue to decrease until the New Year. At this time last year we were nearing 9,500 total listings; however, so far in 2022, we have yet to break the 8,700 mark. Luckily, rates have increased, making the current market somewhat manageable for buyers.
Prices are up YOY; Prices are down MOM.
2022 prices in Boston and Massachusetts will see a 5-10% increase YOY, solely because of the steep increase in prices early on in the year. Although, month-to-month prices have been declining slightly since June.
Demand / Competition continues to fall.
Boston homes are now selling for 2.5% below the original asking price, a 1.16% drop from last quarter. This drop further signifies that we are no longer seeing multiple over asking offers on EVERY home. However, we are still seeing bidding wars, multiple offer situations, highest and best, waived contingencies, and over asking sales. PICK your battles, and make sure you are going into each offer with a detailed plan of attack.
