Happy New Year! I hope you enjoyed time with family and friends over the holidays.
What is happening in the local real estate market? I would describe 2023 as a year of corrections. In Hingham we had 3 years of unprecedented and rapid growth. The median sale price grew by 57% during that time. In my opinion, that was not a healthy market and now the market has adjusted accordingly. In 2023 we saw fewer homes sold, at a lower median sale price and taking longer to sell. Yet the median sale price is still 50% higher than 4 years ago. We are also starting to see inventory improving which is good for buyers. As I mentioned in previous newsletters, the market stalled when mortgage interest rates started to do a rapid acceleration in 2022. Fortunately we are starting to see some moderation in mortgage rates and experts believe that will help make 2024 a better real estate year.
Inventory- Over the past few years we have had a lack of inventory to meet demand. That trend continues but it is improving. Right now we have 1.6 months of inventory. It is important to note that we typically have the lowest number of homes on the market during the first quarter. A balanced market has 4-6 months of inventory.
Interest Rates- It is no surprise that interest rates have increased over the past 18 months but are starting to moderate. 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 an expectation that they will be in the 6-7% range for 2024.
2024- Forecasters predict a more balanced market for 2024. 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 still high demand from Hingham buyers. We need homes to sell!
A Favorite Local Business- I have included some information below on one of my favorite new local businesses called Noted. It is a gift shop at Queen Anne Corner, next to Bank of America. They specialize in handmade candles of all different scents and they even offer candle making classes! I hope you will check them out.
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.