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

 

Were starting to see more inventory in the market however prices are still significantly over asking and we have quite a bit of pent-up buyer demand in the marketplace. We will continue to monitor the inventory closely but it is still a strong sellers market in MA Multi-Family space.

Monthly data through July 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 listings are now selling +2.5% over asking price on average, which is the highest we have ever seen, since starting to track this data. We are still seeing less, but still some strong bidding wars on the best properties and market appears to be ramping up into the busier summer and fall markets. Interest rates have moved up quite a bit since January and we are feeling its impacts of less buyers being in the marketplace at our open houses and have been receiving less offers. We’ve been seeing more price decreases on MLS but if a property is priced right it will still move very quickly and for significantly over asking. We have experienced some of our buyers getting priced out of the greater Boston market due to the higher interest rates, 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 inventory currently on the market we do not see any indicators in the data to suggest the market will be changing in a significant way 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.