Look Inside My Crystal Ball: Real Estate Predictions for 2017
What will 2017 bring for real estate in Central Massachusetts?
Oh, if I had a crystal ball, I could advise my clients exactly on what to expect for 2017. Alas, I am a lowly real estate agent and can only make predictions based on the trends of the past year and the current activity in the market. As such, here are my big four predictions for 2017:
1. Buyer demand will outweigh seller activity. The towns in Central Massachusetts have much pent-up demand. Buyers who have waited years to get into the market are finally coming out to look at homes. However, sellers will think carefully about putting their homes on the market, hoping to capture top dollar at the (unpredictable) peak of the market.
2. Bidding wars will continue. A rarity in our area, we started to see bidding wars on desirable homes in 2016. With low inventory, this trend will continue until supply starts to meet demand.
3. Homes needing work will lag on the market. The issue is, how salable is a property? Homes that have been maintained and are in good condition will sell quickly, but those in which maintenance has been deferred will grow stale as they sit on the market. The percentage of buyers willing to purchase a home that needs significant updating is dwindling. Such properties will need to be bargain priced.
4. Home prices will rise but at a steady rate. Home sellers may dream of another boom market; however, appraisers are being conservative as they analyze home values. Prices will rise at a slow and steady pace. We are already seeing home sellers having to adjust their selling price following appraisal.
Says the Crystal Ball: 2017 will be a healthy year for real estate. Homes will sell at a faster pace, but not at an extraordinary increase in price.
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Text and photos copyright Kathryn J. Acciari unless otherwise noted.
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Kathryn Acciari, RSPS, SRS, RESE, CFA
Serving the Route 9/20 Corridors of Central Massachusetts
Sturbridge to Westborough
Cell: (508) 982-0686