Let’s look at the current market conditions for Newburyport real estate and Newburyport homes for sale. A coastal city only 35 miles North of Boston, Newburyport has become a very desirable town that many would like to call home, including first-time home buyers, luxury buyers, millennials, empty-nesters, and young families. Everyone loves Newburyport’s vibrant downtown, shopping, restaurants, and close proximity to beaches.
Newburyport Sales 2021 vs. 2022
As we kick off the month of February in 2022, Newburyport has seen a total sales volume of $9.1 million compared with $14.5 million in 2021.
Similarly, so far in 2022, Newburyport real estate has seen $11.3 million in homes go pending, compared with nearly double that amount in 2021, which saw $21.6 million in sales pending for the same time-period.
This lack of housing inventory is one of the factors that has caused home values in Newburyport to drastically increase.
Rising Homes Values
According to Zillow, “Newburyport home values have gone up 19.7% in just one year.”
Indeed, per the data from the Multiple listing service, the average price of a single-family home in Newburyport over the past year is $933,090. Yet, in 2019, and pre-covid, the average single family home price in Newburyport was significantly lower at $758,018.
Luxury Buyers
The rise of prices also is due to an influx of luxury and high-net worth buyers who are moving to Newburyport, and are paying cash for homes, rather than taking out a mortgage.
101 Lime St., Newburyport. Sold for 2.6 Million.
Expert Luxury Real Estate Agent and Top Producer Alissa Christie of Bentley’s Real Estate says many new buyers who are trying to buy a house in Newburyport are becoming discouraged by rising prices. “There’s so many buyers out there, and we are still getting multiple offers on every house.”
In fact, for the first time, the average sale price of Newburyport homes for sale has surpassed the average list price, and by nearly $20,000!
Condos in Newburyport may be a better option for first-time home buyers as there is slightly less demand compared to single-family homes in Newburyport.
The Basic Concept of Supply and Demand
Some of the discouraged buyers have indicated that they are inclined to wait for home prices in Newburyport to come down.
Yet are Newburyport home prices going to come down? Are rising home prices in Newburyport reason to be concerned about a market crash like the 2007 housing bubble?
A former attorney and economics specialist, Alissa Christie believes along with other economists that the answer to this question comes down to the basic principles of supply and demand, which is different from the 2007 housing crisis. The lead-up to the 2007 housing crisis saw over-extended credit and other factors that artificially inflated prices.
There are signs that point to a continuing healthy real estate market in Newburyport as Newburyport offers a unique setting for people to live in and to appreciate the beautiful environment. Due to unique conditions brought on by the coronavirus pandemic and the ability to work from home, Newburyport is becoming less of the hidden gem that it once was.
“We may see a small adjustment in prices more likely due to a rise in mortgage interest rates,” Alissa says, but at this point the market will likely remain steady.
Buying in Newburyport?
If you’re planning to buy a home in Newburyport, it's best to reach out to Alissa Christie and Bentley's Real Estate. As the top Brokerage in Newburyport and Greater Newburyport, Bentley's can guide you and give you the great advice for purchasing a home, and keep you in the loop on Coming Soon homes for sale, often published on instagram. You can also check Alissa's website to see listings of Newburyport houses for sale.
Selling in Newburyport?
Curious about what your home is worth? If you’re planning to sell your Newburyport real estate in the near future, a lack of inventory may have you thinking about selling sooner, as there are many eager buyers. With escalating interest rates, your best bet is to list your home sooner rather than later. Contact Alissa Christie if you want a free home market evaluation.