While not all markets are the same and not all markets were affected by Covid-19 the majority of markets have some exciting months ahead. With COVID-19 clearing and people starting to venture out again most are wondering where the market will go. How do we know where the market will go and why? Well that’s a sticky point because there are a lot of variables. In this blog I am going to tell you my opinion of markets like the market I live in here in Hanover, Massachusetts.
For us here in Massachusetts as real estate professionals we were always considered essential employees therefore we never stopped working. Well…. There were many who did decide to hunker down, but those agents are risking their businesses in not servicing their clients. As we continued forward, we saw everything from people flaking out on deals to people getting furloughed and losing a deal. Lots of deals were closing but a good number were either falling apart or getting put on hold. Now that we have news of a reopening here people will be getting their jobs back slowly but surely and we now need to know what is next.
Massachusetts is opening in Phases so I will write this blog as such with other editions coming out as we near each phase. This also gives me room if my predictions are off to re-calibrate and try to work on the data, I have available each time. Phase one here in Massachusetts includes office work, industry, construction, hairdressers, retail, and so much more. Though it is a lot of industries each have their own standards, and none are at full capacity with the majority being 25% capacity at most. These people returning to work will represent thousands if not hundreds of thousand of people how now re-qualify for mortgages. Now let’s talk about the market.
On the 25th in Massachusetts businesses are set to reopen meaning employees who are back will be able to tell their lender they are back and get a new updated pre-approval. This is great news for everyone other than frustrated buyers already in this heightened market. This upcoming week is really turning out to be a big one and here are a few reasons why
- Low interest rates
- Low supply with high demand
- COVID-19 pent up demand
- Backed up deals from before
- Spring Market
- Estate Sales
I know a lot of you have buyers who have been frustrated and felt prices were high well I got news for you. The prices are only going up in areas like this. After a huge 2019 and up swinging prices we were left with a lot of buyers who did not find homes. Early 2020 we put a lot of deals together at even higher numbers and quite a few were on pause due to furloughs. As these closings show up you will only see an uptick in the pricing based on the comps we have. While this can not last forever this has a long way to climb before any corrections.
While no one knows where the market will go there is one thing that is for sure and that is that the supply is low and demand is high. If you are working with buyers or sellers alike now is the time to strike and get yourself into a home before inventory rises or prices increase depending on the side you’re on. I hope you enjoyed today’s blog and please make sure to join our Facebook Group, subscribe to our Podcast, and join our email list for more great free training. If you have any questions or comments please leave them below.