Manchester By The Sea Fall 2011 Housing Market Report

Manchester By The Sea Housing Market Report Fall 2011

It’s been a testy fall market for MA real estate. People are freaked out about Greek debt, Italian scandal, Spanish unemployment, American double dip recession prophecies and a roller-coaster stock market that has your 401k feeling as nauseous as a Realtor at a for-sale-by-owner convention. After a rockin’ spring market here in northeastern MA that started a bit late due to snow (and snow, and snow, and snow) which threatened to actually revitalize many local real estate markets, the federal government entirely lost its ability to govern over the summer as the US was suddenly downgraded from rock solid credit to sketchy-teen-druggie-with-a-credit-card status and the whole real estate market vibe changed.

Manchester By The Sea Fall 2011 Housing Market Report

What’s funny is that not much ACTUALLY changed, it was just a matter of perception and many potential buyers and sellers shared the same negative perception. People thought the housing market, and all markets, were tanking. Some saw this as inspiration to make wild low-ball offers that went nowhere, some ran for the hills and gave up their home-owning or moving-up plans in favor of hiding under a rock, savvy investors bought the hell out of good deals available mostly to just cash buyers, and meanwhile mortgage interest rates crept to their lowest of ALL TIME.

: Manchester Fall 2010 Sales Data

: Manchester Fall 2011 Sales Data

Look above, autumn 2010 cumulative home sales in Manchester equal 12 total sales at an average sale price around $861k. Look below, autumn 2011 sales are up to 15 (up twenty percent) at an average of nearly 992k (up around thirteen percent). What does this mean???? It means…. honestly… nothing noteworthy has changed. On the verge of a double dip recession, a European economic meltdown and a domestic political quagmire, northeastern MA real estate values and sales are… the same.

The fact is North Shore property values are largely stable, sales are steady, the markets show resilience and even growth (Manchester and Beverly sales volumes AND average sales price are both up over 2010), the only real change is that mortgage interest rates are now ridiculously low, roughly 20% below this time last year in 2010. OK… the market is largely the same, but it costs 20% less to buy something using a mortgage. This area is not losing value or losing steam. This market is simply cheaper in which to or sell.