If you've been reading the news about the housing market, you've probably read that homes are flying off the shelf and there is a shortage of inventory. Sounds like we're in a great seller's market doesn't it? There have also been a lot of stories written about we're in another housing bubble that's about to burst.
March 2016 vs. Year Ago
Well, there is no housing bubble here on the North Shore! And, with the exception of some price points and in some communities, it is most definitely not a seller's market. While we've seen a nice, healthy 6% sales growth for the first quarter vs. last year, new listings are outstripping sales . In the first quarter we saw an 18% increase in new listings vs. the first quarter of 2015 and a 27% increase in new listings over $1,000,000.
With rising inventories buyers have lots of homes to choose from, and this reduces their sense of urgency to pull the trigger on a new home purchase. Even when they find the perfect house they are paralyzed by the fear that a better house will come along. This is setting the stage for longer market times and softening prices. Days on market increased 15% in the first quarter while the median price declined 6%. We are also seeing an increase in deals falling apart during (read the rest of North Shore Real Estate Report)
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