(Cross-posted from Orange MA Real Estate)
As we approach the end of October, there are 340 single-family homes on the market in the North Quabbin Region, which includes Athol, Erving, New Salem, Orange, Petersham, Phillipston, Royalston, Warwick and Wendell.
These 340 homes have been on the market for an average of 223 days.
The 340 homes for sale in Athol, Orange and the surrounding towns are close to a 21st century high for this date.
The average of 223 days on the market is a clear 21st century high in our region on this date.
That's the supply side. What about demand?
From January 1, 2008 through October 22, 2008, 173 single-family homes in the North Quabbin Region were sold through the MLS. (This number does not include private real estate sales, such as family transactions or for-sale-by owner homes.)
These 173 homes sold in Athol, Orange and the surrounding towns took an average of 191 days to sell.
On average, these 173 homes took twice as long to sell as the 439 homes sold in Athol, Orange and the same surrounding towns in 2004.
If the current rate of sales continues, 2008 will see less homes sold in the North Quabbin Region than in any other year of the 21st century.
Also, if the current rate of sales continues, buyers would take over a year and a half to go through the current inventory of Athol-Orange area homes for sale... even if not a single new listing were to come on the market.
That's slow demand. And with the economy faltering and lenders tightening up, demand is likely to stay slow.
A high supply of homes for sale + a slow demand for homes = a buyer's market. That's how the law of supply and demand applies to real estate.
We are not alone. The buyer's market in Athol MA real estate and Orange MA real estate resembles the real estate buyer's market across most of the USA.
Today, in Athol, in Orange and everywhere, it's important for home buyers and home sellers to be realistic. With unsold homes in high supply and demand reduced by economic stress, the buyer's market is likely to stay with us for a long while.
Note: Four Columns Realty calculated the North Quabbin Region statistics in this post based on information supplied to and compiled by the MLS Property Information Network, Inc., for the periods of time indicated.
