Friday, March 27, 2009
Hurry up and Buy - Home supply going down.
SUPPLY OF HOMES ON THE MARKET GOING DOWN ON THE NORTH SHORE OF MASSACHUSETTS
North Shore, MA - The inventory of homes has been steadily dropping on the north shore since the begiining of the year. Typically as we get closer to spring we see the supply increase, but that is not occurring this year. It seems that savvy homebuyers and investors are snapping up properties left and right with the mind set that we are at the bottom of the market and it doesn't make sense to wait. Add to that the very low mortgage interest rates (below 5%) and the $8,000 tax credit for first time home buyers, and the result is a frenzy of people trying to get the best real estate deals.
According to MLS, the number of homes (condos, single family and multies) currently on the market on the north shore of massachusetts is 3,877. Last year on this same date (March 27th) there were 4,988 homes on the market. That's a drop of 22% over 2008!
Although inventory dropped for all types of homes, multifamily homes dropped the most. In 2008 there were 658 multies on the market, today there is 350! That is almost a 50% drop in the number of 2, 3 and 4 family homes available to choose from over last year. I'm not supprised by this because the list price of multies has dropped over 35% since 2005. You can actually buy a 2 family home as an investment and have positive cash flow from it - something you haven't been able to do in several years.
Here is a link to a video from WBZ TV in Boston about the current market: