Predictions On the Spring Real Estate Market from a Panel of Local Experts
“There’s no curb appeal if there’s no curb!” — Rona Fischman, 4 Buyers Real Estate
We are less than a week away from March, which usually signals the beginning of the frenzied spring real estate market in Massachusetts. However, unless you’ve been hibernating with the bears up in Maine, there’s a slight problem. We have snow. Lots. Of. Darn. Snow. The winter has wrecked havoc with everything, and that includes the real estate market.
Boston Magazine is bullish on the spring market, but what do the real experts think? I put the questions to my network of experienced local Realtors and mortgage professionals. I asked them if the snow will push back the traditional start of the spring market? What are inventory levels in your area? Do you have sellers waiting for better weather before they list? Are buyers waiting or are they trudging thru the snow to view listings? Do your see the spring as a buyer or seller market? Loan officers, where do you see rates and products this spring?
Here’s what they said, and don’t forget to clink their websites for more info.
“I’m seeing a very sluggish start to 2015. Snow, cold temps, ice dams and the general malaise that’s set in on our region are all factors. I hear buyers are getting preapprovals and a few select properties have received multiple offers. But, overall it’s been slow and until sellers get houses prepped for market the buyers will wait on the sidelines.” — Ali Corton, Realty Executives Boston West, Framingham
“Inventory is definitely down here in Cambridge & Somerville — today we have just 31 active singles/condos/multis in Cambridge, compared with 46 last year on 2/26. In Somerville, we have 27 active listings today, compared with 40 last year. Granted, even those 2014 figures are really pathetic, as we’ve been dealing with extremely low inventory for the past several years, but this year is an extreme case. Funny thing is, those agents who are putting their sellers’ homes on the market are seeing plenty of traffic at open houses and showings, receiving multiple offers, and getting record-high prices, so I don’t know why anyone is hesitating to list.” — Lara Gordon, Coldwell Banker, Cambridge/Somerville
“The market in Sudbury is certainly slower than a typical winter market, but there are plenty of buyers hoping to take advantage of low rates and opportunities with motivated sellers. Like with any market, homes in popular price points that are prepared and priced right, are selling quickly and in some cases, resulting in multiple offers. Buyers aren’t as hesitant to go through the process now as Sellers are. Sellers are hesitant for many reasons, lack of curb appeal – which in many cases, great curb appeal adds value to the house, the thought of buyers trudging through their houses with snow on shoes (even though it’s always requested to remove shoes), ice dam damage, the thought of moving when the desire to hibernate is much more appealing and last but certainly not least, the liability involved in having a house on the market when snow/ice/icicles can potentially cause harm can be scary for homeowners. The Spring market should be strong, with plenty of pent up demand and after the winter of ’15, more city buyers looking for a beautiful garage with a nice house attached!” — Gabrielle and Carole Daniels, Coldwell Banker Sudbury
“Definitely slower right now than usual. The market reports are quiet. I think everyone is tired of the snow and I have properties with ice dams affecting closing dates etc… I think Spring is going to POP everyone is going to be excited about warm wetaher but expect some wet basements….The market is just stagnant. Sellers want to sell but feel as if their home is not ready to be shown. Buyers jump on MLS everyday looking for new listings but slim pickings. If we could only get them all on the same page.” Heidi Zizza and Amy Uliss, mdm Realty, Framingham
“Inventory in the Somerville-Cambridge metro area has been low for two years. This February, it was very low. I am anticipating another seller’s market, but less drastically uneven in 2015, compared to 2014 and 2013. This winter is likely to push people to move. I anticipate that people who planned a move in the next 2-4 years may jump sooner. City dwellers who struggled to park and find places to pile snow are anxious for off-street parking and some land. Over-housed suburban residents will sell to right-size into managed condos (where someone else hounds the plow guy to get there.) Retirees may head for warmer climes sooner. We all complain; home owners can do something about it. I suspect that inventory levels will become more even by late spring. Sellers will delay putting their houses on the market until after the snow is melted and their roof and ceiling damage is repaired. I have heard of two transactions that fell through because of ceiling leaks. There could be more stories about this, since so many houses have sprung leaks.” — Rona Fischman, 4 Buyers Real Estate Cambridge
“I have a few buyers and we have been walking thru knee deep and higher snow just to see some of these homes, agent’s don’t shovel thier listings nor do their sellers. I had one agent tell me the door would be open only to get there and walk through waste deep snow to find the door was locked and we could’nt see the house. I have buyers looking but the lack of good homes currently on the market is frustrating.” Sherry Stone-Graham, Touchstone Partners, Chelmsford
“With Janet Yellin’s recent speech, we may see rates start to step up by June, 2015. Just recently the international and domestic markets played theme park as they see-sawed back and forth causing rates to jump between about 3/8 over the last 3 months. However, in comparison to 1 year ago today, rates are still about 1% lower. So, bring on the inventory consumers.” — Jeff Chalmers, Guaranteed Rate, Norfolk
“My sellers in Winchester, Arlington, Woburn, Stoneham, and Melrose are waiting until the snow is more manageable. Homeowners are extremely preoccupied (and rightly so) with protecting their current homes. The more immediate demand is for ice dam removal!” — Katherine Waters-Clark, Arlington
“Bristol, Plymouth and Norfolk counties, lots of buyer calls and showing through the snow. Open houses averaging 3-4 families, inventory extremely low, prices going up, new construction permitted but held back from snow, sellers asking me to call back in March/April to list. My prediction is a sellers market first half of year then based on inventory to demand we will see if it equals out. Right now we are doing print materials, polishing off the listing and buyer presentations and balancing with rest and entertainment because April 1 st the flood gates are going to open and you better be rested and in shape to work extremely hard building your inventory and business to bring you through next winter with no worries. REST, AIM. FIRE!” — Dan Gouveia, Keller-Williams, SouthCoast
“I am in the Franklin area and the snow has definitely pushed back potential sellers, but the buyers are out there! They are looking, going to Open Houses and acting now while rates are low and PMI just went down as well. My advice would be to clean off that snow and get your house on the market now while inventory is low.” — Amber Cadorette, Keller-Williams Franklin
“I agree, buyers are definately out going to open houses even with the record breaking temps and snowfall! I think the prediction that interest rates will be increasing next year has a lot to do with it. Personally, I don’t feel sellers are waiting for spring to list their homes. I listed two properties today (Northbridge) and will be listing another (Needham) next week.” — Anita Bertone, Keller-Williams Wrentham
“Buyers are swarming anything new to the market priced well – I have had multiple offers on my recent listings. The snow is NOT stopping the buyers so sellers should not wait till Spring when inventory will be better which usually lessens the value of their home. Supply and Demand…Little Supply + High Demand = More $$$ in Seller’s pockets!” — Anne Silverman, Realty Executives Boston West
Thank you to all the contributors to this post, especially Gabrielle Daniels who came up with the creative title! I’m sure this will be a much-read and much-shared article in the coming months. Let’s hope that this Ice Age ends soon and we can start buying and selling homes!