In the past few weeks, I have seen lots of properties come
onto the market here in Waltham,
MA with less of those homes being
purchased. In a healthy market, I like to see a, one to one ratio of new
listings to home that go under agreement on a weekly basis. The current market
in Waltham is following
a ratio of three new listings, to one property going under agreement.
So why is the market slow? I believe there are a number of
reasons which are all contributing to the slowdown. One, is the total number of
buyers out looking for a home. It’s more difficult to qualify for a home loan
than in the past. The banks and mortgage lenders are being very selective and
stringent in the pre-approval process. This will limit the number of buyers in
the buying pool. Also buyers are increasing there search area and looking in multiple
communities. In the past, a buyer may have had two communities they
concentrated on in their search area. Today, it’s not unusual for a buyer to
have three or even four other communities, thinning the flock of buyer even
further. Lastly, until inventory decreases we’ll have a slowing of the market.
It takes buyers a lot more time to view all the homes in their price range and
as more homes come on the market, buyers are reluctant to "pull the trigger”
because, the buyer feels a better home could be just around the proverbial corner and are waiting to
see if it will come on the market. Lastly, buyers are also waiting for prices
to drop even more.
Home pricing can compound the issue because while new
listing are coming on the market, sellers have a tendency to price their homes a
little hirer than the current market will bare. I’m not saying the homes are
being over priced but, sellers are pushing the limits at the beginning of the
listing period. If a seller chooses to over price their home in the beginning,
then as the listing sits, small price adjustment are necessary before a home
may attract a buyer. The first price reductions on a property may be considered
and assessed in the second to third week in the listing period, again adding to
the slowing market place.
I believe the market place is poised to get stronger. As
employment is on the rise and more people feel more secure in the jobs. For
additional information regarding the current market refer to my housing reports
for Single Family, Condominiums and Multi-Family properties.
Tags:
Waltham real estate , Moody , Market , report.
Kenneth Brown
