The Massachusetts Association of REALTORS® (MAR) reported today that the number of single-family homes put under agreement in December was up 5.3 percent compared to the same time last year. This is the first significant increase in year-over-year pending sales in seven months.
This is truly exciting news. Many of my colleagues I spoke with reported December being their busiest month of the year. These numbers support those claims.
Buyers are buying. It seems they have gotten the message that in increase in the interest rate equals a decrease in their buying power. Did you know that on the average for every percentage point the interest rate increases, they can afford 10% less of a home? So, for the buyer who had been approved to buy a $500K house at 4% will only be able to afford a $450K house at 5%?
In many MA markets, especially around or east of the 495 belt, there are mulitple offers and some are going over asking price. One of my colleagues this morning just told of an open house she hosted on one of her listings on Sunday and there were over 15 people who attended. That's a remarkable number for the day after New Year's Day.
The spring market may begin early...are you going to be leading the pack or pulling up the rear?