Plymouth, MA real estate update/Coronavirus

Blog Post Image
Market Trends

Plymouth, MA real estate update

Most of us are in a “quarantine-mode” during the coronavirus outbreak we are all going through. I hope everyone is staying healthy and safe. The real estate market is still open for business, albeit with many more precautions and virtual meetings in place. How is the virus going to affect the real estate market?


If we look at the latest data from MLS, not much has changed at the moment. Due to the slow-volume nature of the real estate market (as opposed to the High-volume nature of the stock market (meaning the number of sales that take place on a daily basis)), there will be a lag time before it is possible to really measure the impact. Due to the low supply of listings we currently having in Plymouth, and still very high demand at this moment (sales in 2020 exceed the last 4 years), the fundamentals (supply/demand) right now still look great. However, what we have to recognize moving forward, is the economic impact of the virus and how it might impact real estate. There are many people who are out of work, have had businesses shut down, and/or have taking a major financial hit now and moving forward as well. Homeowners that can no longer pay their mortgage and other housing expenses may be forced to sell, unexpectantly, over the course of the next year or so. Buyers in the market who are economically affected by the virus may put their buying plans on hold.


If we have delinquent mortgages (although there are grace periods currently in place), this will not only put pressure on homeowners, but also pressure on the banks, which are already starting to tighten lending requirements in anticipation of this (article today 4/13/2020 on FoxBusiness.com about JP Morgan Chase tightening lending requirements for most new home owners including a minimum of 700 credit score and 20% down). Developments like this, if done on a large scale, could start changing the supply and demand factor, which could lead to more listings on the market and fewer buyers. This will put downward pressure on prices. Again, the real estate market moves SLOW in comparison to the stock market (for example), so this type of development, if it happens, could take months to unfold and is only something to keep in mind at this point. This is why paying close attention to the market is important, so homeowners, sellers, and buyers of real estate stay informed and educated. That is what I focus on, giving my clients the most up to date information and market data, so you can make the best decisions for you and your particular situation.


Alrighty, let’s move on to some recent market stats: Listings are at a 5 year low so far this year in Plymouth. We have had 147 single family listings, down from 215 in 2019 (32% drop). This, combined with the most sales we have had thus far year to date over the last 5 years (193 sales so far, which is an 18% increase from last year), has resulted in market prices increasing again to $407,000 (median price) so far this year. The low supply is great for sellers and homeowners considering selling, but of course, there are also health considerations we are all dealing that need to be taken into account. For buyers, especially first-time buyers, it is still a challenging market (highest prices ever and low inventory). I would suggest having a long-term plan if you are looking to own a new home right now.

 

Plymouth, MA real estate update. Real Estate Prices, Values.

 

Tags: Plymouth, MA real estate trends; Plymouth, MA real estate values; Plymouth, MA real estate prices; Plymouth, MA real estate price trends; Plymouth, MA real estate agent; Plymouth, MA real estate; Plymouth, MA buy home; Plymouth, MA sell home; Plymouth, MA real estate sales information; sell my home Plymouth, MA; my house value, Plymouth, MA