The Sellers are always the last to get the memo
You can see and feel the multifamily market falling in Worcester (except for outlier properties that are in Single Family neighborhoods). But when you look on the MLS the prices look the same.
Part of this has to do with the still low inventory. There are only 62 multis for sale as of the writing of this blog. This might be a normal inventory, but most of these 62 properties are not a value at that price (essentially many will never sell at these prices). So the true inventory is closer to 35 properties which isn't enough.
Market Dynamics
The properties in the most desirable neighborhoods clear right away, as do the properties that are priced appropriately to market.
Challenges for Sellers
Another issue is that potential sellers have nothing to buy, and they simply don't want to pay CAP GAINS TAXES on their wins. They also have loans under 4%, and even if they buy something new, it will cost them more to own.
Advice for Buyers
What is a Buyer to do? Continue to purchase a property that works for you. The only silver lining here is that it is likely that rates will be lower in a couple of years so you will be able to refinance.
Future Outlook
I do not see values slipping to any great extent until we have people who are forced to sell.
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