FSBO Massachusetts Real Estate Market

Historic cities, lobster dinners, and the sound of the sea spell Massachusetts, but how is the FSBO Massachusetts market doing?  Is the market for homes strong in Nantucket and New Bedford?  Is the Boston real estate market healthy?

Let's do some spot checks on the state of the Massachusetts real estate market and see what clues that offers FSBO (for sale by owner) sellers and buyers.

BOSTON
According to The Boston Globe, prices for single family homes in Boston increased by 80% in the early part of this decade.  Now real estate sales prices have dropped significantly.

For the quarter ending June 30, 2008, condo sales in downtown Boston declined for the third straight quarter, but the median price was still hefty at $500,000 according to the Listing Information Network, Inc.

On July 15, 2008, Jeffrey Bastress, owner of Startpoint Realty, said that there's a glut of single family homes in Massachusetts.  He says this is especially true of property in the suburban areas outside Boston, and specifically cited Worchester County, Essex County, Middlesex County, Norfolk County, and Plymouth County.  Overall marketing time is running 8 to 10 months.

Mr. Bastress says there are 2 types of buyers who are active in the Massachusetts real estate market.  The first type is investors who are looking for super cheap buys among foreclosures and rehabs.  The second type is a home buyer who wants to find a meticulously maintained home in a terrific location for an attractive price.  Anything that's not attractive to one of these types of buyers will sit on the market.

All this suggests several conclusions.

People who have owned their homes long enough probably still have significant equity.

People who want to sell need to price their property attractively.  If you want to sell as a FSBO and need to sell within a reasonable length of time, don't make the mistake of "trailing" the market down.  Make your home look as great as possible and price it just below recent comparable sales in your neighborhood.  Then create a marketing plan to get the word out to potential buyers.  Monitor the situation, and you should be fine.

Buyers of FSBO properties are in a good position.  FSBO sellers aren't paying a commission and (all other things being equal) should have more negotiating room.

NANTUCKET
If you're planning to build a new home on Nantucket, you're in luck.  According to The Inquirer and Mirror, new home construction was on a pace of about half that of 2007 through the first half of 2008.  But that's not all.  2007 was the slowest year for housing starts since 1991.

The result is that many contractors, carpenters, and others skilled in home building are available and very willing to take on new projects, so if you're building on Nantucket, lucky you!

"Price corrections" are continuing in the resale real estate market on Nantucket, too.  That's not to say that properties are suddenly cheap.  However, for such a beautiful, charming, culturally rich, and historic location, the prices are better than in the recent past, and, therefore, have a certain attraction.

According to Great Point Properties, five residences and one lot were sold on Nantucket between June 9th and June 13th, 2008.  The homes sold for $6.5 million, $2.25 million, $1.85 million, $1 million, and $714,500.  The lot sold for $345,000.

NEW BEDFORD
As reported by trulia, the median sales price of a 3 bedroom home in New Bedford was $163,000 in the May-July 2008 period.  This was down from the median price of $235,835 during the same period last year.

I think it's safe to say you can find some bargains if you're shopping the real estate market in New Bedford, don't you?  What could be nicer than affordable real estate in an historic, artistic, city by the sea?  There's even a fast ferry to Martha's Vineyard.

CAPE COD - BARNSTABLE
The Cape Cod Times reports that real estate sales volume in Barnstable County is up from one year ago.  They also report, however, that the median sales price in July 2008 was $50,000 less than July 2007.

CAPE COD - HYANNIS
On July 28, 2008, Yahoo Real Estate reported 162 homes for sale in Hyannis for a median price of $293,900.

On August 15, 2008, Zip Realty showed 87 homes for sale in Hyannis.  Four were priced in excess of $1 million ($1.25 million, $1.3 million, $1.5million, $2.45 million).  The lowest price was $112,900.  There were a number of choices for under $300,000.

I think it's safe to say there's a wide range of price and degrees of grandeur available in Hyannis.

CAPE COD - PROVINCETOWN
A small town (about a mile wide and three miles long) P-Town as it's sometimes called is unique.  It has a Town Meeting (yes, the entire town votes) form of government, and  respect for freedom and respect for tradition are hallmarks of its inhabitants.  For summer by the sea complete with shopping, dining, and casual dressing, it's delightful.

According to Pied Piper Real Estate, Provincetown does not have a local, realtor MLS.  However, local real estate firms share information with each other and "co-broker" properties.

On August 15, 2008, Zip Realty had six single family residences listed for sale in P-Town.  They included a 2 bedroom house for $449,000, a 3 bedroom for $949,000, a 3 bedroom for $1.999 million, a 7 bedroom for $2.385 million, and a 3 bedroom for $4 million.  Again, quite a range.

According to trulia, the median price of a single family home in Provincetown was $400,000 in July 2008.

So there you have it, the Massachusetts real estate market is adjusting.  FSBOs can do well in Boston, Nantucket, New Bedford, or on the Cape as can other buyers and sellers of homes, but sellers need to adopt a realistic strategy in order to be successful.  Homes and other properties are selling.  Buyers are picky about price, but sales ARE happening.

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Early spring 2008 NANTUCKET walk

We came by boat

The streets are fairly narrow, the houses charming and old enough to tell interesting tales

Widow's walk speaks of Nantucket's past

Near edge of town, houses are sometimes way back in large gardens

What a handsome view this house must have

Oldest house on Nantucket

"L" shape of this house makes it larger than it appears at first -- a style we saw often

A great place for a hot lunch by a warm fire on a chilly day!

Cobblestone & brick streets in the shopping area

One of many tempting art galleries

A "so Nantucket" detail on a screened door