The Market is CRAZY!!

So what exactly does a "crazy" market mean?

Anecdotally, we know the 2021 North Shore Real Estate market felt fast and furious.  We've all heard tales of buyers facing multiple offers, bidding over list, and facing pressure cooker decisions.  While that was surely the experience for many, it is important to look to the data for context.

See Below for Data from all North Shore Towns

One of the best indicators of market activity is the number of buyers writing contracts in a given week. While showing activity is also interesting - many showings don't translate to closings. Closings are also a marker but they can happen within 21 days or 200+ out so the weeks during which buyers are actually writing contracts is the best insight into strength of  the market at any point in time.

The Data. . . 

Certainly, the first half of 2021 felt the craziest.  This time period also saw the highest levels of contract activity in nearly every town (except Evanston). An interesting note, however, was that often the 2021 levels of contract activity were very close to 2019 levels, yet 2019 didn't feel quite so frenzied!

Inventory levels provide the missing context. As you can see below - in 2021, the months supply of homes plunged to historic lows in every town. Most towns dropped from a 5-8+ month supply of homes in 2019 (defining a buyer's market) to a 2 month (or lower) supply flipping the tables to a sellers' market for the first time in at least a decade. Low inventory fed the frenzy of buyers writing contracts.  Certainly most sellers benefited from this market with higher prices and shorter market times, but it's important to note that not all homes received multiple offers and crazy bids over ask. As is usually the case, newly renovated homes in A+ locations were most in demand and saw the craziest bidding wars!

Looking Ahead. . .

In many towns, the most recent weeks' contract activity levels reflect a slowdown from earlier weeks, as well as a slowdown from the same week in 2020 where contract activity remained elevated through the summer.  In many cases, 2021 activity is even below normal market levels seen in 2019. No alarm bells are ringing though - as we do not expect a permanent slowdown. With historic low interest rates, it remains a great time to purchase a home! The current softening of the market is not unexpected, now that the economy is opening and many pandemic restrictions have been lifted, buyers are taking the time to travel and enjoy the warm weather instead of shop for homes.  Others are waiting for inventory levels to replenish. We fully expect an upturn in the fall and a strong 2022.  We will continue to monitor the situation and report back!

All UC activity for detached single family homes only