Page 8 - BusinessWest January 24, 2022
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ing price.
That’s great for sellers and listing
agents, she admits, “but I’m having concerns. What are working people going to do? If you haven’t made money in real estate, it’s very hard to buy in now.”
Locally, in her Amherst-area mar- ket, “it could affect people who apply to UMass because professors don’t want to live far away and teach; they want to live in a 20-mile radius,” she noted. “But South Hadley’s expensive, Belchertown’s exploding, Hadley ... for- get it, and Northampton’s out of sight.”
The pricing has forced some creativ- ity, to say the least, Nancy said. “People
are waiving inspections; that’s scary to me. And I’m seeing an awful lot of par- ents step up to the plate and help. They say, ‘I’d rather help my kids when my eyes are open, rather than having them get it when I’m gone, and I don’t get to see the joy.’
“I’m grateful — we’re lucky to be
a listing agency,” she went on. “But a lot of my colleagues are disappointed they’re in this feeding frenzy. If they’re new and working with buyers, it’s a lot of work to place an offer — a lot of paperwork, disclosures, everyone has to sign, get pre-approval ... to do all that work just to be disappointed. The feeding frenzy is just cuckoo.”
Shifting Sands
Cheryl Malandrinos, president of the Realtor Assoc. of Pioneer Valley (RAPV), said the pandemic caused people to look differently at how they work and, in turn, where they live.
“They decided they didn’t really need to live as close to their offices
if they were going to be able to stay remote for the time being. So we’ve definitely seen a shift here,” she told BusinessWest. “We did see buyers from the outside area, from other states, come into the Valley as well. So we continue to struggle with low inventory and rising prices throughout. The real-
ity is, we haven’t been able to produce housing for quite some time. That has not helped us any.”
At the end of 2021, inventory in
the region was 30% down when com- pared to December 2020, and prices rose about 15.4%, on average, over that same time period — which is remark- able, considering that articles like this one — discussing the same issues of a supply crunch and high selling prices — were being written a year ago, too.
One issue is that Millennials are increasingly entering the market, and they’re looking for affordable homes. “The reality is 41% of total buyers are first-time homebuyers, so entry-level homes are high demand,” Malandri- nos said, and those homes aren’t being built at the rate buyers demand — especially during a lumber shortage. “It’s hard to build that first-time-home- buyer, entry-level home and make it affordable.”
“A lot of my colleagues are disappointed they’re in this feeding frenzy.”
For that reason and others, she said, Realtors and economists expect demand to continue to soar in 2022, especially with the prospect of the Fed raising interest rates. “Buyers will keep us busy in the winter season, looking for homes and hoping to secure them while the rates are still historically low, which gives them more purchasing power.”
Last year, the median price of an existing single-family home nationally jumped to an all-time high of $357,900, up 23% from 2020, according to the National Assoc. of Realtors (NAR).
“Supply-chain disruptions for build- ing new homes and labor shortages have hindered bringing more inven- tory to the market,” said Lawrence Yun, NAR’s chief economist. “There- fore, housing prices continue to march higher due to the near record-low sup- ply levels.”
Yun noted that inflation and the pace of price appreciation is expected to subside next year. At NAR’s recent Real Estate Forecast Summit, econo- mists and housing experts agreed that inflation would likely ease in 2022 at a 4% rate, while home prices are expect- ed to rise at a moderate pace of 5.7%.
So what does that mean for buy- ers? “You have to be prepared because you’re going to face a fair amount
of competition in the marketplace,” Malandrinos said. “Gone are the days when you could find something and, a few days later, think about talking to a lender.
“You need to be prepared right away — engaging a Realtor as soon as pos- sible, getting pre-approved, so you’re all set once you find what you want, because you’re not going to have time
 THE CITY OF SPRINGFIELD
REQUEST FOR PROPOSALS
The City of Springfield is requesting proposals for the use of American Rescue Plan Act funds in the following categories: Household Assistance, Senior Assistance, and Economic Development/Job Creation. The RFPs are available at 70 Tapley Street in Springfield, and through the City’s website: https://www.springfield-ma.gov/finance/arpa. Proposals will be accepted on a rolling basis, starting November 1, with qualified respondents receiving grants to address negative health and/or economic impacts from the COVID-19 pandemic. Interested parties are strongly encouraged to apply.
La Ciudad de Springfield está solicitando propuestas para el uso de los
fondos de la Ley del Plan de Rescate Americano en las siguientes categorías: Asistencia al Hogar, Asistencia para Personas Mayores y Desarrollo Económico / Creación de Empleo. Las RFP están disponibles en 70 Tapley Street en Springfield, y a través del sitio web de la Ciudad: https://www.springfield-ma.gov/finance/arpa. Las propuestas se aceptarán
de forma continua, a partir del 1 de noviembre, y los encuestados calificados recibirán subvenciones para abordar los impactos negativos para la salud y / o económicos de la pandemia de COVID-19. Se recomienda encarecidamente a las partes interesadas que presenten su solicitud.
         8 JANUARY 24, 2022
FEATURE
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