Greater Gardner MA Real Estate Market Update: August 1, 2023
At the end of August last year, Gardner Magazine wrote about home prices and interest rates being up. See article from last year.
Right now while nearby communities are seeing double digit increases in home prices, Gardner prices are similar to last year. And, not all reports are the same as the periods pulled for various statistics at various sources appears to vary slightly. Best advice: If you’re selling, get yourself a good realtor who can pull realistic comps. If you’re buying, know that you are still buying at the top of a market and will be incurring some of the highest interest rates, which means a higher monthly payment, the highest perhaps in more than 2 decades. There are economists who project a market adjustment pushing house prices lower at some point and others who forecast a more stable market. If you buy less house than you can afford, you’ll put yourself in a better spot in case your individual financial circumstances change.
In Gardner, the median home price 2 years ago was $289,000 and $330,000 1 year ago. Today, the median home price is very close to 1 year ago. According to Zillow, the average Gardner MA home is worth $329,763, down .3% over last year. Prices are projected to increase 4.3% in the next year.
According to Realtor.com, the median listing home price in June 2023 was 329.9k, trending up 3.1%. According to Rocket Homes, homes in Gardner have sold for 5% more than they did a year ago. Here are the increases in median sold price in nearby communities: Westminster, 21.2%, Winchendon 18.2%, Baldwinville 4.4%, and Templeton 2.7%.
Interest Rate Changes in the Last Couple of Years Pushing up payments
Interest Rate July 2021: 3% —- Interest Rate July 2022: 6% —- Interest Rate July 2023: 7.25%
Monthly cost of buying a home has increased due to much higher interest rates. With the Feds recent increase in the rate charged to banks during the last week of July 2023, it is possible mortgage rates will increase further. Payment is only principal and interest and does not include any possible mortgage insurance, home insurance, and real estate taxes. July 2021 – 289,000, down payment of 28,900, 30 yr. mortgage of 260,100 at 3 % = 1096.59 —– July 2022 – 330,000 down payment of 33,000 30 yr. mortgage of 297,000 at 6% = 1559.43 —- July 2023 – 329.763, down payment of 32,977 30 yr. mortgage of at 296,786 7.25% = 1774.34
If interest rates were to go to 8%, monthly payment would be: 1905.42 – This is likely the range at which rates will settle based on historical rates around the year 2000 when the Fed rate was similar. However, to put things in perspective, the payment at 17% interest (which was the rate for a period in the 1980s would make the payment on this home 3705.18 monthly.)