Jan. 13, 2022 Worcester
Since the start of 2020, COVID-19 has brought a lot of unknowns to people’s lives, jobs, health, and finances. As everything was shutting down in early 2020, there were a lot of unknowns on how real estate would be affected. Many expected a market crash to occur due to the uncertainty and negative impacts caused by the pandemic. Strangely enough, 2020 and 2021 became some of the most active years in the real estate market, with climbing sale prices and rents. This ended up causing buyers to need to waive contingencies and offer $60k over asking just to have a chance at getting an offer accepted.
Real estate may seem to always be appreciating and growing higher and higher, or at least recently, but it normally moves in cycles (seen below). The market receives most of its inventory in the summer months and less so in the winter months.
With Worcester ranking in the Top 10 Housing Markets for Growth in 2020 (https://www.realtor.com/research/top-housing-markets-2022/), the demand seems to only be increasing. When looking at the Worcester Listing Volume, below, 2021 listings going into the new year are substantially more than in the previous year. However, when looking at the Worcester Market Supply, the number of months of supply is dwindling. Market supply is determined by the volume of listings in the market but also accounts for how quickly inventory is moving. These two data points together indicate that the demand on the Worcester market still remains high while the winter cycle of short supply has also arrived.
The competition over multifamily real estate in Worcester remains high and will seem more aggressive than even the summer months of 2021 due to the normally lower volume of the cycle. Adjust accordingly, as there are still good deals out in the market, but you might have to look a bit deeper. No investment is better than a bad investment. Happy 2022 Worcester!
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