Like most of the nation, Plymouth-area homes keep appreciating, but at a much slower rate than the price surges marking the Pandemic years. While the rate of home price growth has slowed, properties appear to be in little danger of losing value.
In the U.S., homes over the long haul average 4 percent annual price hikes, making real estate a great investment and wonderful hedge against inflation.
Today, what keeps home prices high? Answer: Low 
home inventory remains tight, helping to fuel price increases.
What principal forces keep home inventory tight?
- The “lock-in” effect. Many homeowners with Pandemic-era mortgage rates at or below 3 percent don’t want to lose those low rates and are staying put.
- Housing affordability. Because of high home prices, the median age of first-time home buyers has jumped from around 30 years to 40 years today (before the 2008 economic collapse until today), according to Investopedia. (The 2008 collapse had been fueled by loose and shoddy home-lending practices. (I recommend that folks reread the book and see the movie again: The Big Short.)
- Homeowners are staying in their homes longer. Homeowners once remained in their properties 6 to 7 years, on average, before moving. Six to seven has jumped to about every 11 years today.
- Limited new construction. The lack of land in eastern Massachusetts and zoning restrictions make it difficult for home builders, along with the high cost of building materials.
During the Pandemic-led home buying frenzy, buyers snatched homes in the first day or two of hitting the market and often waived home inspections to make their offers more attractive to buyers. Today, the market has “normalized”. Days on Market (DOM) has crawled upward to a healthier, 23-to-35 DOM in the Plymouth area.
What does today’s market mean for home sellers? Inventory remains tight, which works in their favor. But homes no longer fly off the shelf. For the most part, a sound pricing strategy remains critical to attract buyer traffic and offers.