Which matters more – home sales numbers or price?
No, no, it’s not a trick question.
I am also intrigued when I hear or read of a report on commentary about the real estate market which leads with sales numbers. I suspect – usually correctly – that such a report comes from a Realtors’ association. I mean, how many houses does the average home buyer buy or sell in a month, or a quarter, or a year. Quite.
The latest announcements comes from the Mass Association of Realtors (MAR), of which I am a member, which led its February report with the news that sales were down nearly 1% year over year. And oh by the way prices were up 7.5%.
Sales figures do, of course, matter. There is no doubt that the low level of inventory is holding back sales. As I have frequently said: low inventory + low mortgage rates + strong demand = rising prices. Inventory in February in MA was 3.4 months, whereas 6 months is normally regarded as a market in equilibrium between buyers and sellers.
Here are charts showing the 5 year trend of SFHs for sale in Marblehead and Essex County overall:
Source: MLS, Oliver Reports
Source: MLS, Oliver Reports
While it is reasonable to expect greater supply as we head into “spring” (and it is snowing again as I write this) I suspect that many potential sellers are going to discover the need to make some repairs as a result of this winter before their house is ready for sale. I see no end to the inventory shortage any time soon.
If you – or somebody you know – are considering buying or selling a home and have questions about the market and/or current home prices, feel free to contact me on 617.834.8205 or Andrew.Oliver@SothebysRealty.com.
Andrew Oliver is a Realtor with Harborside Sotheby’s International Realty Sotheby’s International Realty® is a registered trademark licensed to Sotheby’s International Realty Affiliates LLC. Each Office Is Independently Owned and Operated
You can REGISTER to receive email alerts of new posts on the right hand side of the home page at www.OliverReports.com.
@OliverReports