MLS Multi-Family Market Data as of April 15th 2022

 

Monthly data through April 2022 for MA in total shows a very strong cyclical market. The big story here is the very, apparent, and continual, lack of inventory in the multi-family marketplace. We saw inventory tick up a little bit in going into Q4 last year, then decline rapidly. Last year we had a VERY STRONG sellers market and with inventory levels running even lower this year it is setting us up for an even stronger sellers market going into the spring market. Looking at the sold vs list price chart we can see on average listings are selling almost 2% over asking price while this time in 2021 things we’re selling at about asking price on average. We are still seeing some very strong bidding wars as things ramp up for the summer market. We have moved most of our flips onto the market and they all sold very quickly and at or above asking with multiple offers. Interest rates have moved up quite a bit and we are feeling its impacts at our open houses. WE are starting to see some buyers bring priced out of the market however “starter home” and small multi-family markets are still going very strong due to the pent-up buyer demand, lack of inventory, and increasing rents.

 We are keeping an eye on the multi-family inventory in ma very closely and also monitoring the average sale price vs list price so we can provide better guidance to our clients. if we see a sharp increase in inventory this will be a good forward looking indicator that prices may start to soften. Average multi-family listings continue to be at an all time high. however, based on what we see in the low listing numbers and the very low, less than 1 months of supply, of inventory currently on the market we do not see any indicators in the data to suggest the market will be changing anytime soon. 

 

*This is MULTI-FAMILY specific data pulled directly from the MA MLS, this data does not include any Single Family, Condo, or Commercial properties. It also does not include any properties sold off-market or anything that was not physically listed on MLS as a “Multi-Family”.

Historic Data going back to 1997 for Comparison

 

The Massachusetts multi-family market has seen quite a few changes over the last 20+ years. The number of listings, or active inventory, is very low compared to prior years which is driving this very strong sellers market over the last few years. This shortage of inventory is driving the average listing price significantly up. As you can see we are at an all time high, in terms of average multi-family listing price. This is being driven up by the rapid recovery we saw in greater Boston market as the impacts of Covid started to taper off. Boston, with it’s high prices, drives the majority of the MA real estate market averages at a state level. When Covid hit the prices in Boston were impacted while the suburbs, 30+ minutes outside of Boston, continued to appreciate. Values have bounced back making right now the most expensive MA multi-family real estate market of all time.