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Cooling Housing Market Gives Home Buyers Hope

Boston is an expensive city to buy a house. Anyone who has ever tried to buy in the Boston area knows about the bidding wars and heavy competition to become a homeowner. Fortunately for sellers, the Boston area housing market has been heated and growing steadily more heated over the past few years. However, buyers may soon be catching a break according to new reports that show home prices in the region showed the first signs of cooling off in October—the volume of sales slowed, as the number of properties for sale increased.

The new reports reinforce the national trend in the market that has seen real estate cooling, amid rising interest rates and high asking prices.

“We’ve seen a steady softening of sales since Labor Day,” said President of the Greater Boston Association of Realtors, Marie Presti. She added a positive spin for buyers, “The good news for home buyers is there is less competition when making an offer, more time to shop for homes, and more opportunity to get into a property following a recent influx of new listings coming onto the market.”

Another sign of a cooling market is that asking prices for one in five homes on the market in October was cut at least once, according to data from October actually saw the most price cuts in the last seven years!

Ryan Wilson, owner of Wilson Group Keller Williams Realty mentions how homes are sitting on the market longer. “That starts to give buyers more leverage,” Wilson said giving the data a positive spin. “We’re seeing it more in the higher end. Typically, that’s what you see first, and then it trickles down to more-affordable properties.”

Adding another layer to the current market, inventory is increasing in the Boston area market! According to the GBAR, the number of houses and condos for sale in the Boston area was up 8.7 percent in October—with new listings up 20 percent—compared with the same amount last year.

For buyers, this could mean things are finally looking hopeful! Geri Farrelly, owner of Farrelly Realty Group in North Reading says, “Things aren’t moving up like they were. That was crazy…[but] it feels pretty stable right now.”

However, it is important to note that the Boston market is not likely to get much cheaper, especially for lower-priced homes, which see the most competition. Data from the trade show group shows that the median sale price of a single-family home in the Boston area in October still climbed 7.1 percent, from last year during this time.