This year has already brought incredible changes in real estate for the Greater Boston area, including prices going through the roof.So as the market enters the slower fall and winter seasons, one expert says things are cooling down — but don’t expect that to translate into lower prices. When we first spoke with Denise Garzone in April, the housing market had reached a fever pitch with lines of buyers, dozens of offers on homes for prices well over asking prices and buyers waiving inspections. Now, she says things have changed again.”I think the frenzy of the spring, early summer market has tempered for sure,” Garzone said. “Buyers were fatigued, just completely fatigued and frustrated, and they chose to step out of the market.”Make no mistake, it’s still a seller’s market and prices are still up substantially.The most recent numbers from The Warren Group, a Boston area real estate and financial data firm, show Massachusetts single-family home prices are up 29.4% in just the past two years.Garzone says sellers are no longer seeing 15 to 20 offers, which had become common in many suburban towns in the spring.”In our marketplace, we’re seeing maybe one to three,” she said.According to Garzone, the lower number of offers means some houses that once went for several hundred thousand dollars over the asking price now have a new normal price of $50,000 to $100,000 over asking — and that’s assuming the house is priced correctly.Even with very low inventory, buyers are being more patient as pandemic panic has started to fade.”(If a house) appears to be overpriced to buyers, they will sit on the fence and wait out the weekend and see if it’s still available the following week,” Garzone said. Garzone expects inventory to remain tight, which will keep high prices in place, so those who are waiting for a big price correction may be out of luck.”I don’t see huge price corrections happening this fall through the end of the year,” she said. “If it’s a good house and priced well, it’s going to go.”Another sign the market has cooled ever-so-slightly is that the risky trend of buyers waiving all inspections and contingencies just to win a bidding war has largely ended.
This year has already brought incredible changes in real estate for the Greater Boston area, including prices going through the roof.
So as the market enters the slower fall and winter seasons, one expert says things are cooling down — but don’t expect that to translate into lower prices.
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When we first spoke with Denise Garzone in April, the housing market had reached a fever pitch with lines of buyers, dozens of offers on homes for prices well over asking prices and buyers waiving inspections. Now, she says things have changed again.
“I think the frenzy of the spring, early summer market has tempered for sure,” Garzone said. “Buyers were fatigued, just completely fatigued and frustrated, and they chose to step out of the market.”
Make no mistake, it’s still a seller’s market and prices are still up substantially.
The most recent numbers from The Warren Group, a Boston area real estate and financial data firm, show Massachusetts single-family home prices are up 29.4% in just the past two years.
Garzone says sellers are no longer seeing 15 to 20 offers, which had become common in many suburban towns in the spring.
“In our marketplace, we’re seeing maybe one to three,” she said.
According to Garzone, the lower number of offers means some houses that once went for several hundred thousand dollars over the asking price now have a new normal price of $50,000 to $100,000 over asking — and that’s assuming the house is priced correctly.
Even with very low inventory, buyers are being more patient as pandemic panic has started to fade.
“(If a house) appears to be overpriced to buyers, they will sit on the fence and wait out the weekend and see if it’s still available the following week,” Garzone said.
Garzone expects inventory to remain tight, which will keep high prices in place, so those who are waiting for a big price correction may be out of luck.
“I don’t see huge price corrections happening this fall through the end of the year,” she said. “If it’s a good house and priced well, it’s going to go.”
Another sign the market has cooled ever-so-slightly is that the risky trend of buyers waiving all inspections and contingencies just to win a bidding war has largely ended.
