Newburyport Market Update - March 2022 | Essex County, MA Real Estate

Person + Person Group - Newburyport Real Estate

19 Apr 202202:59

Summary

TLDRIn the March 2022 market update for Greater Newburyport, the key highlight is the unprecedented rise in interest rates, now over 5%. The report reveals a contrast between single-family homes and condos, with single-family homes experiencing higher competition and selling at 7.8% over asking, while condos sold closer to the asking price at 1.2% over ask. Cash transactions significantly contribute to the market, with a median sale price of $872,500 for single-family homes and $520,000 for condos. Despite low volume, the market remains healthy with consistent demand.

Takeaways

📈 Interest Rates Surge: As of the recording, interest rates have reached over five percent, marking the fastest raise in history.
🏡 Single Family Homes Market: There were four single family home listings that closed with an average of 5 days till offer and a 7.8% sale price over asking.
💰 Financing Insights: Among the sales, two were cash transactions, one had another type of financing, and one was a conventional loan.
🏢 Median Sale Price for Homes: The median sale price for single family homes was reported to be $872,500.
🏘️ Condo Market Overview: There were 10 condo sales with an average over ask of just 1.2% and a median sale price of $520,000.
📅 Quick Turnover for Condos: Condos had an average of 29.7 days on the market before sale, indicating a faster turnover compared to single family homes.
💵 Cash Transactions Dominant: One of the condo sales was a cash transaction, highlighting the continued significance of cash in the market.
🔍 Market Competition: The competition for single family homes is fiercer with a higher percentage over asking compared to condos.
🏠 Home Type Consideration: Buyers might have a better chance of getting an offer accepted on a condo due to less competition.
📊 Healthy Market Despite Low Volume: Despite a low volume of sales, the market for March is considered healthy with consistently strong demand.
📈 New Listings on the Rise: There is a hopeful sign of new listings coming onto the market, although the numbers are lower than in previous years.

Q & A

What was the main focus of the March 2022 market update for Greater Newburyport?
-The main focus was the rapid increase in interest rates, which have topped five percent, and its impact on the housing market.
How did the interest rates change as of the time of the video?
-As of two hours before the video, interest rates had reached over five percent, marking the fastest raise in history.
What was the average days on market for single-family homes in the local report?
-The average days on market for single-family homes was five.
What was the average percentage over asking price for the four single-family home sales mentioned?
-The average percentage over asking price was 7.8%.
How many of the four single-family home sales were made with cash?
-Two of the four sales were made with cash.
What was the median sale price for single-family homes in the report?
-The median sale price for single-family homes was $872,500.
How many condo sales were there in Newburyport according to the report?
-There were 10 condo sales in Newburyport.
What was the average over ask percentage for condos compared to single-family homes?
-The average over ask percentage for condos was 1.2%, compared to 7.8% for single-family homes.
What does the difference in over ask percentages between single-family homes and condos suggest about the market?
-It suggests that there is less competition for condos, with condos selling closer to the asking price compared to single-family homes.
How many days on market was the average for condos sold in Newburyport?
-The average days on market for condos was 29.7.
What was the median sale price for condos in the report?
-The median sale price for condos was $520,000.
What does the script suggest about the flexibility of buyers in the market?
-The script suggests that buyers with the flexibility to choose between a condo and a single-family home might have a better chance of getting an offer accepted on a condo due to less competition.
How did the hosts describe the overall health of the market for March?
-The hosts described the market as very healthy for March, despite the low volume.
What was the hosts' observation about the number of units that came on the market last week?
-The hosts observed that although the number of units that came on the market last week was hopeful, it was significantly lower than what would have been expected three years ago.

Outlines

00:00

📈 March 2022 Market Update: Interest Rates and Housing Trends

In this video, the hosts discuss the March 2022 market update for Greater Newburyport. They highlight the unexpected rise in interest rates, which have reached over five percent, marking the fastest increase in history. The conversation delves into the local real estate market, noting the average days to offer and the percentage over asking price for single-family homes. Four listings closed with a median sale price of $872,500, with two sales being cash transactions and one using another type of financing. The hosts also contrast the single-family home market with the condo market, pointing out that condos had a lower over-ask percentage and a higher number of sales, suggesting less competition and potentially a better chance for buyers to secure a property in the condo market. The video concludes by acknowledging the healthy state of the market despite low volume and a hopeful outlook due to new units coming on the market.

Mindmap

Keywords

💡Market Update

A market update is a report or summary that provides information on the current state of a particular market, often including trends, statistics, and analysis. In the context of the video, the market update is specifically for the real estate market in Greater Newburyport for March 2022, highlighting the latest developments and changes that could impact buyers and sellers.

💡Interest Rates

Interest rates are the percentage at which borrowing or lending occurs, and they significantly influence the cost of borrowing and the return on investment. In the video, it is mentioned that interest rates have topped five percent, which is a critical factor for potential homebuyers as it affects their mortgage costs and the affordability of properties.

💡Greater Newburyport

Greater Newburyport refers to a larger area that includes the town of Newburyport and its surrounding regions. The video discusses the real estate market trends specifically in this area, making it a key geographical focus for the market update.

💡Single Family Homes

Single family homes are residential properties that consist of a free-standing house intended for one family's use. The script mentions the sale of such homes, providing statistics on the average days till offer, percentage over asking, and the median sale price, which are all crucial indicators of market health.

💡Condos

Condos, short for condominiums, are a type of residential property where individuals own their unit while sharing ownership of common areas with other unit owners. The video contrasts the sales data of condos with single-family homes, noting differences in market dynamics such as over-asking percentages and days on the market.

💡Days Till Offer

Days till offer is a metric that indicates how long a property is on the market before receiving an offer. A lower number suggests a more competitive market. In the script, this metric is used to compare the speed of sales for single-family homes and condos.

💡Median Sale Price

The median sale price is the middle value of all sales prices for a particular type of property within a specific time frame. It provides a more accurate representation of the market than the average sale price. The video uses this term to discuss the central tendency of sale prices for both single-family homes and condos.

💡Over Asking

Over asking refers to the final sale price of a property being higher than the initial asking price. It is an indicator of demand and competition in the market. The video script uses this term to compare the intensity of bidding wars between single-family homes and condos.

💡Cash Sales

Cash sales are transactions where the buyer pays in cash, without financing. This can sometimes lead to faster closings and may be more attractive to sellers. The script mentions that cash was a significant contributor to the market, indicating the presence of buyers who can close deals quickly.

💡Financing

Financing refers to the process of obtaining funds from a lender to pay for a purchase, such as a home. Different types of financing can impact the attractiveness of an offer to a seller. The script notes that some sales involved different types of financing, including conventional loans and cash.

💡Market Competition

Market competition refers to the level of rivalry among buyers for available properties. A higher level of competition can drive up prices and make it harder for buyers to secure a property. The video discusses how the competition differs between single-family homes and condos in the Newburyport market.

Highlights

Welcome back to the March 2022 market update for Greater Newburyport.

Interest rates have topped five percent, a faster raise than expected.

The fastest raise in interest rates in history.

Opportunity to capture rates in the low fours for single-family homes.

Four listings closed for single-family homes with an average of five days till offer.

Average percentage over asking for single-family homes was 7.8%.

Two of the sales were cash transactions, one had another type of financing, and one was a conventional loan.

Median sale price for single-family homes was $872,500.

10 condo sales in Newburyport with an over-ask of 1.2%.

Average days on market for condos was 29.7.

Median sale price for condos was $520,000, with one sale being cash.

Condo sales are less competitive compared to single-family homes.

March has been a healthy month for the market despite low volume.

A number of units came on the market last week, indicating hope for the market.

If it was three years ago, we would have seen 10 or 12 units come on the market, but we saw only three or four.

Demand remains consistently strong in the market.

Decision-making between condos and single-family homes based on market conditions.