May marks turning point in housing frenzy, homebuyers starting to regain control: Massachusetts HomeBuyers HomeOwnership

 Homebuyers are finally starting to regain some control. May was a turning point in the pandemic housing frenzy, according to a new Redfin report, which saw home inventory climb to a new high and more sellers dropping their prices. But that all comes at a great cost as record high prices, along with the five percent mortgage rates continues to keep many buyers out of the market. Last month a record fifty seven percent of homes sold above list price, up from fifty one percent a year earlier. Redfin’s economics research lead Chen Zhao said the sudden surge in mortgage rates led to May’s sudden and significant housing market cooldown.

 “However, mortgage rates are now stabilizing and homes remain in short supply, so while we do expect home-price growth rates to decline, we don’t expect prices to fall much at the national level,” Zhao said. “For homebuyers trying to determine the best timing this year, the main benefit of waiting is that there may be less competition as supply starts to build up.” Redfin found fewer Google searches for “homes for sale” during the week ended May 21, down ten percent from a year earlier. Its Homebuyer Demand Index, which measures requests for tours and other services, fell nine percent year over year during the week ended May 29, the seventh consecutive decline in the index.

 Additionally, mortgage applications fell fourteen percent from last year as the thirty year mortgage fell slightly to 5.09 percent for the week ended June 2. With that, the monthly mortgage payment on a median asking price home fell slightly to two thousand three hundred and ninety one dollars up forty percent from one thousand seven hundred and ten dollars a year earlier, when mortgage rates were 2.99 percent. In the four weeks ended May 29, active listings fell ten percent year over year (the smallest decline since April 2020). The median asking price rose seventeen percent from 2021 to four hundred and twelve thousand four hundred and fifty dollars.

 Meanwhile, the median sale price increased sixteen percent year over year to a record four hundred thousand nine hundred and ninety nine dollars. Fifty four percent of homes went under contract with an accepted offer within the first two weeks of being listed, up from fifty three percent last year. Thirty nine percent of homes went under contract with an accepted offer within one week, remaining flat from last year. Homes on the market fell to a record low fifteen days, a drop from nineteen days in 2021. And they continue to sell well above asking price. A record fifty seven percent of homes sold above list price last month, up from fifty one percnet a year earlier.

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First Time Home Buying in Massachusetts

MABA Buyer Agents help first time home buyers reduce the stress and frustration normally associated with buying a home or condo – especially for first time home buyers.

As a first time homebuyer in Massachusetts, you can turn to our non-profit organization to help you understand and navigate the complexities of the entire Massachusetts real estate transaction, from mortgage pre-approval until you are handed the keys to your new home or condominium. Each of our member buyer's brokers and agents works only for their buyer-clients and never for the seller of the home or condo that their buyers want to buy.

MABA Buyer Agents will take the time to learn about you and your real estate goals, help you understand your options, including first time home buyer programs, properties and/or condominium associations, estimate real property values and put together a negotiating strategy to help you increase the odds of getting your offer accepted in our competitive Massachusetts real estate market. After advocating to get your offer accepted, your MABA buyer's agent will be there for you at your home inspection and help you protect your deposit through the inspection, purchase & sale and financing contingency periods.

You can buy your first home or condo with confidence knowing that your MABA buyer agent is committed to saving you time and money and helping you make your best home buying decision.