Worcester Multi Market STATUS REPORT 12.6.2021

The multifamily market in Worcester is still HOT.

Currently on the MLS there are 36 Multis for sale, This is the lowest on market number in the last 4 years.

Here is the breakdown:

11 - 2 families

20 - 3 Families

2 -4 families

3- 5+

On top of that there are a couple of those that are under contract that are not reported that I know about.

And of those on the market, many are just not going to sell at those prices so those should be taken out of the equation.

There are 16 Marked as Contingent(CTG), so they are early in the purchase process

There are 105 Marked as Under agreement(UAG), so they are further along in the process

Figure the process takes about 60 days from CTG to sale, if we take those 121 that is just about 2 a day or 14 a week that are in process.

So far in 2021 there have been 308 multis sold in 48 Weeks. So about 6-7 per week.  So currently we are working at double the pace of the past year.

WHAT IS GOING ON?  POSSIBLE ANSWERS

A. People are not selling due to the winter and the holidays

B. People can't buy anything bigger or better if they sell, so they are staying put

C. Simply the people who wanted to sell in 2021 have already sold

D. Demand is simply out stripping supply so properties go quickly

E. There is too much stimulus and "helicopter" money out there that people want to buy a tangible asset to keep up with inflation

F. Now that 2022 is upon us, sellers want to understand if there will be any changes to TAX LAWS for 2022

G. Buyers want to lock in LOW INTEREST RATES

H. Investors are buying up inventory

I. There is no NEW CONSTRUCTION of 3 deckers in Worcester

What does this say to us?

A. If you find a solid deal-  BUY IT

B. Sellers will come out at some point but you need to MOVE QUICKLY

C. Look at the OFF MLS DEALS as you may never see them on the MLS (I have put 2 solid multis under contract in the last month off MLS)

As the Boy Scouts stay--- "BE PREPARED"

Stuff is moving fast, but I don't think that people are overpaying like they did this summer.