The Newton condominium market was extremely strong the first two quarters of 2022 before predictable seasonality and rising mortgage rates decreased buyer participation.
It is a story that played out across the country, but unlike other areas the Newton condo market bounced back from panic selling ending the year positive with +7% year-over-year growth.
It is no longer the sellers’ market of the past two years, but buyers seem to be coming to terms with the fact that interest rates won’t be returning to the low 2-5% range the economy enjoyed this past decade.
Using MLS data, I took a stab at visualizing the age-old dynamic between days on market (days to offer) and average sale price per square foot.
The width of the line represents days to offer (a leading indicator) and average sale price per square foot (a trailing indicator) playing out over 2022.
The spring market was stronger for sellers with a higher average sale price per square foot and less time until an accepted offer (narrow line).
Properties that settled in March did the best with an average sale price per square foot of $569.
When should you put your condo on the market?
Expanding on the above insights, I created the following graph to illustrate when condominiums were settled (columns) vs. when they were listed (colors).
You will notice the lag between when you need to list your property to settle in the spring, and how the competitive inventory picks up, with settlements peaking in June.
Taken together, these two graphs touch on the relationship between days to offer, average price per square foot, list dates, settlement dates, and increased spring inventory.
February is clearly the best month to list your property – as you avoid the increased competition and are most likely to settle in the spring.
The risk of waiting to list until June is simply too great, especially if you are priced high or a deal falls apart. It is evident that you want to avoid ending up back on the market in the summer as it is the least popular home buying period and runs up against the September 1st lease cycle.
Why is timing more important for condos than single-family homes?
Condominiums are less unique than single-family homes and tend to sell in-line with building comps.
There is nothing worse than having the guy down the hall undercut your marketing effort and steal a buyer; it is extremely important to watch your competition.
When it comes to condos listing early in the spring, pricing your property attractively and getting the job done quickly is what counts.
What is the best day of week to list your property?
Having listed hundreds of properties across Massachusetts, our answer is Thursday. You want to give prospective buyers time to plan their weekend and agents time to do a little research.
By listing your property on Thursday you will be able to hold four open houses before reaching twelve days on the market.
What time should the Open House be?
We recommend scheduling an open house for Saturday and Sunday. As far as time, it is important to monitor the market for competitive open houses and schedule around them. Doing so allows prospective buyers to see both properties and build conviction toward their decision.
Make sure your real estate agent is monitoring the market and strategically positioning your property throughout the listing period.
Of course, if you are ever in need of assistance, the Best Deal Realty team is here to help!
