Summer greetings! I hope you are able to spend time with family and friends during this delightful time of the year.
2023- So far this year has been a slow start with one of the quietest spring markets. The issue? Low inventory, fueled in part by higher mortgage interest rates which started during the summer of 2022. Sellers are reluctant to transition from a low interest rate loan to a higher rate. Lenders these days are quoted as saying, " Marry the house. Date the rate.". Meaning: You can likely refinance when rates moderate.
The number of homes sold the first half of 2023 is off by 53% and total sales volume is off by 56%. This is the first time I have seen such a slow down of the Hingham market since I started producing this newsletter over 15 years ago. The median price grew by over 50% during the past 3 years and that rate is unsustainable. A more balanced market is preferred and that is where we are headed.
Inventory- Over the past few years we have had a lack of inventory to meet demand. That trend continues. Currently inventory is off by 42% from a year ago. A balanced market has 4-6 months of inventory on the market. Right now we have 2 month's supply.
Interest Rates- Interest rates have increased over the past 6 months. See the latest rates below, provided by Kevin Byrne of Movement Mortgage. He is my "Go To" person as he is responsive, professional, reliable and offers very competitive mortgage rate options. While rates have increased, if you have a long view of the market, these interest rates are still competitive and there is hope they will go down over the next several months.
2023- Forecasters predict a more balanced market for 2023. If you live locally and are thinking about making a change, let's chat. NOW is a great time to think about selling. Home prices are still high and there is demand from Hingham buyers. We need homes to sell!
A Favorite Local Business- I have included one of my favorite local businesses, Hornstra Farms in Norwell. They have an amazing ice cream stand this time of year and also a farm store with dairy and prepared foods. Remember July 16 is National Ice Cream Day!
As always, if you have any questions about the local real estate market or would like to discuss purchasing or selling a home, I am just a phone call, text or click away.