What’s Ahead for Greater Newburyport Home Prices?
November is Here!
We have enjoyed a spectacular Fall on Boston's North Shore! Now that it's November, the days are shorter, the nights are getting cooler, and many of us start to reflect on events over the past year. I enjoy using this {somewhat} quieter time to unwind and check in with family, friends, and clients who I do not have regular contact with. It has been an exceptionally busy year for me as I round out the year as the Top Agent in Greater Newburyport with over $40 million in sales volume. So, I'm beyond grateful to be able to spend time catching up with everyone.
A common theme in most of my discussions: Is the Greater Newburyport real estate market really shifting? How are home prices? Is now a good time to Sell or Buy?
The answers to these questions do not call for a generic one-size-fits-all approach. There is no doubt the real estate market is changing. But, if you are serious about buying or selling, it’s most important to discuss a personalized strategy that best achieves your goals.
Newburyport Real Estate is Still in High Demand
Despite slightly longer average days on market, there are currently only 23 homes actively for sale in Newburyport, and the average Days on Market is 57. A market snapshot of this time last year (2021), indicates that there were 20 homes actively for sale, and the average Days on Market was 47.
What does this data tell us? There is still a lack of inventory, and while homes are seeing slightly longer days on the market, they are still selling relatively quickly in Newburyport and Greater Newburyport.
In fact, a snapshot of the Newburyport real estate market 10 years ago shows how compelling this is. As we see from the chart below, in 2012 there were 108 homes on the market AND the average days on market was 173.
So, if you are a Newburyport homeowner and considering selling in the near future, it is still a good time to list your home. We are working with many buyers who are actively looking for a new home! Reach out if you would like a complimentary analysis on what we think your home could sell for if it is listed soon.
Are Home Values Going to Decline?
This is the question everyone is asking right now! Unfortunately, news headlines can paint a negative and distorted picture on this subject. Home value stability naturally varies from market to market, and our local Greater Newburyport market is no exception. As you can see from the chart below, there is a wide variation in home price forecasts for 2023 from different industry experts.
Both the National Association of Realtors and The Home Price Expectation Survey (HPES), predict that home prices will continue to rise on a national level, where Zelman predicts a 5.1% decrease.
Will Greater Newburyport home values continue to rise or start to decline? The data indicates there have been 56 homes listed in Newburyport with price reductions since June, compared with only 12 price reductions in the first half of the year. It's our opinion that current price reductions are reflective of inflated listing prices from a heated market, which saw a rapid climb of 25% in the average sale price in just two years, and not because Newburyport home values are plummeting.
Still, as mortgage rates rise resulting in affordability challenges, we will see buyer demand slow down. This will have less of an impact in Newburyport compared with entry-level markets.
Luxury real estate could also be an attractive hedge for some who are looking for a way to get out of paper money and add properties to their portfolio instead of investing in the stock market. Luxury homes in Newburyport continue to be an attractive option for buyers. Check out some of Newburyport's recent luxury sales.
In general, because of a continued dearth of supply, high demand, and a higher percentage of luxury homes, we predict that home values in Greater Newburyport will remain fairly stable.
36 Daniel Lucy Way Newburyport, $1.55 Million, Sold
87 High Street, Newburyport, $2.795 Million, Sale Pending
1 Lancaster Rd., Newburyport 2.29 Million, Sold