ESSEX COUNTY HOUSING MARKET UPDATE 1O / 21

There’s a lot of chatter out there right now about the housing market and what to expect over the next few months. Below  I'll share where I think the market currently stands and some things for prospective buyers and sellers to keep in mind.

If you’re looking to buy:

1. Don’t wait for the housing market to crash: I’ve talked with several prospective buyers who want to wait until the housing market “crashes” before buying a house. If you’re among those waiting for such a moment, you may be waiting a while. There are several key differences between the housing market crash in 2007 and the market today, including stricter lending regulations, the stronger overall financial health of buyers, and the greater amount of equity most homeowners hold in their property. Though it’s impossible to predict the future, these and other factors make a crash unlikely. 
2. Mortgage rates remain low but are projected to increase: At the start of this week, the average 30-year fixed rate was 2.65% and the 15-year fixed was 3.21%. Experts expect rates to continue rising in 2022. And while they may only go up in total by several decimal points, that can have a huge impact on a home purchase. Now is the time to take advantage, while rates remain low!
3. Share of homes sold above list price drops after competitive summer: Over the summer, sky-high prices scared off many prospective buyers. The good news this fall is that sale-to-list price appears to be on a slight downward trajectory nationally and locally. In Essex County, the current sale-to-list price is hovering at about 103.62%. Directly comparing June and September sale and list prices, Essex saw a $65,000 decrease in median sale price, while median list price remained steady. The market is expected to become even more buyer-friendly in the last few months of the year. As a result, starting your search now could help you stay a step ahead of those who may soon be stepping their toes back into the hot housing market. 
4. Demand is still high, so be prepared to act: While the market is showing some signs of cooling off, the median number of days on market in Essex County shows nearly as much competition as this time last year, with just a three-day difference between 2020 and 2021. With that in mind, if you find a house you like, it’s important to be ready to act. Getting pre-approved, creating a concrete strategy with your real estate agent, and knowing where your down payment will come from are all ways to set yourself up for success. 

​If you’re looking to sell: 

1. Seller’s market persists: In Essex County, our median sale price is $525,000, up from about $505,000 this time last year. In addition, as noted above, houses are typically going for 3.62% over list price, meaning many buyers are getting more than they’re asking for. With that in mind, it remains an opportune time for sellers looking to take advantage of a hot housing market. 
2. Be careful with pricing: It’s important to note that there has been a slight increase in price drops nationally year-over-year, a signal that some sellers may not be pricing their homes correctly for the current market. I’ve seen that in a few homes in Essex County as well. Determining your home’s listing price is an incredibly important part of selling your home and usually requires a skilled agent’s guidance. I’m happy to do some research on your neighborhood and home type and let you know my recommendations for your house.
3. Expect the market dynamics to shift: Experts expect the market will become increasingly buyer-friendly as we head into 2022 due to rising inventory, among other factors. As a result, I’m encouraging all of my clients hoping to sell to strike while the market is still somewhat hot. With comparatively lower interest rates expected through the fall, this season may offer benefits to buyers and sellers alike--meaning if you’re in both boats, you may just get double the advantage. 

If you are looking to buy or sell, have questions about the housing market, or are interested in a home estimate, I’d love to help you. Give me a call or send me an email, and let’s connect

Take care,
Silvio