March 2020, Plymouth, MA real estate update

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Market Trends

Plymouth, MA single-family real estate update

As the winter of 2020-2021 slowly comes to an end, spring 2021 is on the horizon!

As we begin the month of March, listings (inventory) are still way down compared to a typical year.  We currently have 42 active single-family listings in Plymouth, down 73% from 153 listings last year at this time. With the absorption rate at 183% (!), we have about a half month’s supply of inventory (before it theoretically will be bought-up).  This level is still at “low as it gets” levels.  That being said, demand is down slightly from last year.  So far this year, we have had 138 homes go under agreement to sell, whereas last year at this time we had 167.

Things to look for moving forward are rising interest rates and inventory:  The 10-year US treasury note keeps breaking 1.50% yield, which is spooking the markets in our current and ongoing historically low interest-rate environment.  The 30-year fixed mortgage, which tends to track along with the 10-year treasury note, has followed suit rising well above its lows just a few months ago to around 3%.  Although these rates are still super-low, rising interest rates lessens buyers’ purchasing power.  A rule of thumb, although no absolute certainty, is a rise of interest rates of 1% reduces a buyer’s purchasing power by 10%.

The other item to keep an eye on is inventory (listings).  Will the spring of 2021, with vaccinations rolling out, businesses opening up more, and real estate prices at sky-levels, bring more sellers to the market-place?  If supply and demand get back to a more balanced ratio, whether through more listings, less demand, or both, real estate prices should cool off from their astronomical levels. We shall see.

In closing, the Median Sale Price so far year-to-date is $467,500 for single-family properties in Plymouth.  This is up 13% from $415,000 at this time last year.

 

plymouth, ma real estate home price trends

 

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