STATE OF THE MARKET - PLYMOUTH COUNTY, MASS
Here's the story of Plymouth County, Massachusetts for the 2nd Quarter of 2019. These numbers are all in comparison to Q2 2018.
There is still a severe shortage of homes on the market. It's worse than last year with a decrease of 6.9% in the number of homes for sale. Q1 had an uptick vs 2018, but that was apparently a lone data point and not a trend.
The "months supply" number measures how long it would take to sell every property on the market if there was no new inventory. 6-7 months is equilibrium - neither a buyer's nor seller's market. Above 7 months means there's a glut of properties and it's a buyer's market. Less than 6 months means there's a shortage and a seller's market.
Plymouth County is at an eye-popping 3.2 month supply (down 8.3% from last year) - a great time to be a seller and a tough time to be a buyer!
Average sale prices are up by 2.7%. Sales price vs original list is about level, down 0.2%, which doesn't seem like a meaningful change.
It's worth noting that at $483,956, the average sale price is now well above the market peak in Q2 2006 (immediately before the crash started), which was $436,000. Those who held on can finally get their money back - and then some.
For now, the story is simply one of supply and demand. Low supply with high demand, which is driven by high rents. Almost any renter is already spending the same or more than a mortgage payment for a comparable home.
First time buyers are flooding the market at the entry level price point, which is phenomenally competitive.
A sharp listing agent will use these factors to drive bidding wars. A sharp buyers agent will have devised strategies to short-circuit them.
If you're buying, be prepared with your lending secured and be ready to write an offer on the spot if you see a property that meets your criteria. Help me to help you - if we move quickly enough, we can beat the weekend open house and the bidding wars that inevitably follow!
Bear in mind that at this time of year, a moderate-to-large rehab will put us on the market during the holidays, which isn't the best idea. Unless you have a big crew ready to get right to work, a better idea is to look for small, quick flips that you can get on the market in early-mid October.
