Is your market shifting?

Question

I’m curious to know if you’ve noticed a slight change in your market.  I’m located in Salem, MA about 30 minutes north of Boston.  I’ve noticed a lot of properties coming back on the market after having an accepted offer within the first week.  I’ve also noticed that the higher end listings are having longer days on market and selling for about 90%-95% of list price.  Here’s another major difference, have you noticed that the lawyers auction lists are getting longer and BPO orders are up?  We all know that the real estate market is cyclical and that we have been in a hot sellers market however I’m beginning to notice a few things that may indicate another down turn is in the horizon.  I’m not sure that it will be a huge market collapse but there are a few cracks in the foundation of this hot market.  What you are seeing in your market?

Christopher Richardson · Answer

I can tell you that lending did lax up a bit. The more loans out there the more likelihood for foreclosures, and with the new fanniemae & freddiemac comparable low income products that could lead to even further foreclosures. I've had a two lenders mention to me the past week that their data shows Boston as the #1 purchasing for first time millennial home buying in the U.S. I'm not going to predict anything based on that info, but I'm sure you can come up with some of your own thoughts.

Maureen F. · Answer

This trend was predicted by a speaker at the REI meeting in Dedham about two months ago, based on various data points such as upcoming foreclosures.  Unfortunately I don't have his info at my fingertips; perhaps someone else who was at the meeting will chime in.