Spring Market Arrives - Finally!

I have been working with a number of buyers who have been feeling a bit discouraged due to the lack of inventory over the winter.  And in fairness to them - it was pretty brutal.

But never fear - Spring Market is here!  Over the past three years in Middlesex County, 3,269 properties were listed for sale in February vs. 5,310 in March. That’s 62% more opportunities for buyers, and the difference appears to be even more stark this year. Additionally, rates are the lowest they’ve been in months, having decreased to the mid-6s!

But let's say you're a seller...you could make an argument that you don't want to list when everyone else is listing.  Better to stand out as the only option in town, right?  Wrong, I say.  People tend to make a decision when they're presented with a manageable amount of options, and there's a clear best of the bunch.

For example, when I work with sellers, one of the last things that we do is set price.  That is because our price does not stand without context.  If the goal is to sell for the highest price (amongst other favorable terms, of course), then we need to take into account competition.  If I'm listing a 3 bed 2 bath house that appears to be more desirable than another 3/2 around the corner that was just listed for $750, I'm going to advise my seller to be significantly more comfortable listing at $800 than if that other inferior comp didn't exist.  It's quite likely that the vast majority of buyers who see my listing are going to see the other one, too, and be willing to pay for something better (especially if it's in a more affluent community).

Both buyers and sellers need to think through the pricing strategies that are being employed.  Luckily, we're out of the cold and into Spring, and we finally have some data points to work with!