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How's the Market?

Randal Engelmann & Erik Gould

We are Randal Engelmann and Erik Gould, partners in providing exceptional customer service...

We are Randal Engelmann and Erik Gould, partners in providing exceptional customer service...

May 25 5 minutes read

Randal and Erik gives us a quick update on inventory and what's happening on the buy side of the market despite the Covid19 crisis.


Randal:
How's the market?

Erik:
How is the market? Stay tuned to find out.

Randal:
What is going on in the marketplace? What is happening?

Erik:
Some general numbers.

Randal:
Some general numbers. So looking at the Boston market, the biggest commodity that we have to sell, here in Boston, are condominiums. So what is the condominium market doing in the city of Boston?

Erik:
For the city of Boston, right.

Randal:
So really there's a big trend of what's happening in the market. First of all, the number of listing units available today and this has been running for the last month, it's down a little bit more than 20%. So the opportunities to purchase, year over year-

Erik:
Yep.

Randal:
Are down 20%.

Erik:
This is condos for the whole city of Boston, all neighborhoods.

Randal:
Yep.

Erik:
So 20% less coming on the market this year-

Randal:
Yes.

Erik:
Than last year at this time.

Randal:
Yes. So 20% of the volume that we say last year is not there this year.

Erik:
Yep.

Randal:
Then we look at listing taken. So listings taken are the total number of listings that have been put onto MLS. Some of them have sold, some of them have not sold, but the available inventory, it's down 20% or 22%. So number of listings available down 20%. Number of listings taken year to date, down 22%. And then the number of houses that have gone pending, so properties that sellers have accepted an offer for, those are also down. Guess what? 22%. All right. But now-

Erik:
So this is telling us the inventory is less.

Randal:
We have much less inventory.

Erik:
Less sellers, less supply, coming on the market.

Randal:
But what's happening on the buy side, right? So what are we looking at for closed volume? What is selling? We're looking at more units have sold year to date in 2020 at the end of May, than sold by the end of May in 2019.

Erik:
Actually closed.

Randal:
Actually closed. Sales that have gone all the way to record. Okay? So we have actually closed more, just a few more, but that number is still surprising. That number is-

Erik:
So the buyers are out there, closing on properties, even though there's less properties to buy.

Randal:
Yep.

Erik:
And what that does is that makes the inventory go down even further. Our month supply, it's an absorption rate number, month supply of inventory for condos is down-

Randal:
20%.

Erik:
Down 20%.

Randal:
18.8, but we'll round out, right?

Erik:
To 2.2 month supply of condo inventory, as of right now and last year it was a little higher. It was 2.7.

Randal:
So how that all translates on the other end of the spectrum is prices are up. So we have a price increase, the average sales price is up, year over year, by 15%. The average price per square foot is up eight percent, year over year. That is what's happening in the real estate market. This is a spectacular time for sellers.

Erik:
Things are closing. Things are selling. They're selling at higher price per square foot and higher average price. There's high demand, little supply.

Randal:
And little supply. So that is really what's happening in the market. The buyers are driving this marketplace. Buyers want to purchase homes and they're telling us that every day when we see them on the street. They're also telling us that by looking at these numbers. They're also telling us that by showing up and scheduling a virtual showing.

Erik:
Searching on internet is way up. Of course, a lot of you have a lot of time and it's something to do, but internet searches for housing are way up.

Randal:
Yep.

Erik:
But we're seeing a lot of requests for virtual tours and appointments and things like that.

Randal:
So when asked how the market is, down 20% in the city of Boston as far as available inventory, listings taken, prices up.

Erik:
Closings are happening at or above last year.

Randal:
Last year's pace.

Erik:
Even despite the coronavirus and everything that's happening with the U.S. economy. We're going to probably outpace 2019. It's still going to be a record breaking year in real estate.

Randal:
Yeah.

Erik:
We will be doing some more live Facebook videos on specific markets and posting some more specific information for you. If you guys have any questions, let us know.

Randal:
We're here for more numbers for you. So until next time, thanks for watching.

Erik:
And stay tuned.

Randal:
And stay focused.

Erik:
And stay focused. You're like, vegetable lasagna.

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