This is the traditional time of year for retrospective pieces, when we all look back at what has been over the past twelve months.
As we head into the holidays, what did we see in terms of real estate for the month of November?
Typically, the real estate market starts to cool down in November and December. In years past, we would see prices soften and the amount of activity lessen.
On the surface, it may appear as if the market is cooling, but rest assured: it hasn’t. While the number of houses sold is down slightly from last month, the reason for that is that the number of listings that hit the market in November was down 16%. Supply has been dwindling.
If we look at the average sale price from October to November, it is down 1%. Detached and attached homes’ average sale price remained stable at $810,393. What stands out, however, is the average sale price of condominiums; at $585,182, that figure is up 12% since October—a sizeable jump.
So how, then, can the average sale price be down? This is all due to the mix of homes that sold in November. Because there were more condominiums sold, and these tend to sell at lower prices, that pulled the overall average sale price figure down.
Many homes listed below market value and held off on offers, which caused 92% of listings to receive multiple offers. On average, sellers are getting 20% above their list price. Buyers are continuing their hunt for homes, as they try to beat the pending interest rates hikes.
“It is a very Merry Christmas this year if you are a seller, not so much if you are a buyer,” says Trish Lewis, Sales Representative, GoWylde Team/ReMax.
Lewis is anticipating that we are going to see a very strong December and that the prices of homes will continue to climb into the first quarter of the new year. The number of homes sold will drop in December, she predicts, only because fewer people will choose to list during the holiday season.
“I and our entire team at GoWylde Real Estate wish you and your family a happy and safe holiday,” says Lewis.
Click here for the full Cambridge real estate market report.