Oct. 12, 2022 Recent Massachusetts
Listing inventory across the state has remained relatively flat with an actual slight dip in the month of August. Interestingly, the amount of sold properties across the state has declined for the second month in a row in conjunction with the two highest inventory months of the year. This likely represents properties sitting on market longer than originally expected. Likely due to various reasons such as the increased mortgage rates catching up with sales pricing buyers out due to lending (a lagging indicator) and the price adjustments of the market taking time to catch up as well. Price adjustments can be seen to go in a more favorable fashion for many buyers in the ratio of Sold Price vs List Price. While this will take several more months to show if there is a trend, this may be the initial start of a cooling multi-family market.
Taking a look at MLS sold properties, about half of these are reported under conventional financing with a quarter of properties sold still under FHA over the last 3 months. If properties continue to stay at stable prices, as opposed to the rapid growth over the last 2 years, this can help FHA buyers stay competitive since mortgage self-sustainment numbers are coming to risk (the cost of the property vs the income generated from rents).
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