Elaine Bannigan of Pinnacle Properties has for the past 18 years put out The Pinnacle Report, a yearly, data-driven look at residential property sales in Wellesley and Weston. Here is a link to Bannigan’s full examination of the 2020 market. Excerpts that emphasize the Wellesley market are below:
SPONSORED POST: 2020 presented challenges for buyers and difficult decisions for sellers. Taking a big-picture look at Massachusetts as we begin 2021, there are 53% fewer single-family homes on the market than there were just one year ago. Condominium sales are another story entirely. Overall volume dropped just 2%, but the number of luxury unit sales dropped 35%. Those units are primarily in urban locations, and with COVID stimulating an exodus from the city into the suburbs during much of 2020, the impact was significant. At this time, the entire condo supply statewide is nearly the same as one year ago.
The Wellesley Supply Side
The total number of homes offered for sale in Wellesley in the Multiple Listing Service was 417, nearly the same as in 2019. With 345 MLS sales, of course, not all of these listings sold for various reasons. Of all homes that did sell in Wellesley in 2019, ‘off-market’ —or non-MLS listed—represented 14% (51) of the total. This past year, the number was 12% (48). As we enter 2021, the MLS supply is half (20 homes) what was available this time last year.
Local Condos and Townhomes
Wellesley townhouse and condo sales volume increased 19%, and the median rose 5%. The game-changer was the availability of Fieldstone Way, a brand-new neighborhood of 44 Townhomes. Pinnacle introduced the first phase in late Spring, and it sold out within a matter of weeks. With the types of homes and lifestyle it offers, Fieldstone Way addresses voids for a broad range of buyers, from younger professionals to empty nesters who want first-floor primary bedroom suites and more convenient living.
Where is the supply?
There continues to be an acute supply shortage in the housing markets, with increasingly limited inventory. In addition to extreme cabin-fever, record-breaking low interest rates lit a fire under buyers whose employment was secure. Demand increased, supply dwindled. Understandably, COVID-19 outbreaks have delayed some sellers from putting their homes on the market. The number of homes for sale dropped to an all-time low in December, dipping below 700,000 nationally, according to the Realtor.Com Monthly Housing Trends Report. Economist Daniel Hale says more inventory will come in the second half of the year, presumably as the vaccine gets widely distributed and home sellers become less anxious. But what are the bigger issues suppressing the supply?