Sell in May and Go Away
Stock investors are surely familiar with the adage, "Sell in May and Go Away," which basically states that stocks underperform from May to October. I guess it goes back even further to merchants in London, leaving to escape the heat.
For the last couple of years, there has been no break in the buying or selling of multi-family houses in Worcester, MA. This summer looks to be different.
Yes, there is pent-up demand. People need a house to live in, people did a 1031 and need to buy, and people are afraid of inflation and want to put money in real estate. However, many of the buyers that I work with have simply dropped out of the market due to the rise in interest rates.
There is still low inventory, but inventory is even smaller than what it shows, as some of these houses are priced too high that they simply will not sell. I think a lot of sellers missed their window due to the increase in rates since the buyers have left the market.
Current Market Insights
There is pent-up demand for housing.
Many buyers have exited the market due to rising interest rates.
Low inventory is exacerbated by overpriced homes that won't sell.
Sellers may have missed their opportunity due to increased rates.
If you are looking to sell, now is the time to sell, as many of the buyers seem to have left the market.
Comments