Worcester Multi-Family Year of Data Review

[Ian Hogan]

The Worcester multi-family real estate market has been marked by unprecedented lows in inventory throughout the current year, dipping below 25 multi-family listings by December. While there was a marginal uptick towards the end of the summer, it failed to reach the levels observed in previous years, highlighting a sustained scarcity of available properties. This scarcity is mirrored in sales figures, which remained relatively subdued. However, the properties that did enter the market and were reasonably priced quickly garnered significant attention, swiftly progressing to the under-agreement stage.

The market supply dynamics paint a revealing picture, suggesting that if no new listings are introduced, the existing inventory would sustain for an average of one month, with a maximum endurance of 1.5 months. This underscores the acute demand for multi-family properties in Worcester and the rapid pace at which they are being absorbed by eager buyers. The sold price versus list price metric further illuminates the market dynamics, indicating that, on average, properties are selling over their list prices. At the commencement of the year, a statewide price correction was evident, but the constrained inventory coupled with sustained buyer activity led to a notable resurgence towards the end of the preceding year, resulting in properties selling nearly 2% over their asking prices. This trend underscores the resilience of the Worcester market and the significant influence of supply-demand imbalances on pricing dynamics.