It’s still a seller’s market throughout most of Massachusetts and the inventory of non-luxury homes for sale is at historic lows, but that hasn’t made pricing properties easier during the spring market. iStock illustration

Home prices in eastern Massachusetts are starting to resemble Mark Twain’s famous quip about New England weather: If you don’t like it, wait a few minutes.

In the case of single-family homes and condominium prices, some real estate agents say they’ve never seen a market like the one they’re seeing today – with prices bouncing slightly up or down from day to day or week to week for non-luxury housing across the state, especially in eastern Massachusetts.

As a result, it’s getting trickier to accurately price homes when they hit the market, forcing real estate agents and sellers to be slightly more cautious and strategic when setting asking prices for both single-family homes and condos, according to brokers and agents.

“The pricing is changing so quickly in some areas,” said Stacey Alcorn, CEO of LAER Realty, which covers all of Massachusetts via its 30 regional offices. “It seems to be changing by the day. It absolutely makes it harder to set [asking] prices. It’s like the wild, wild west.”

Buyers Gained Some Power

It’s still a seller’s market throughout most of Massachusetts. The inventory of non-luxury homes for sale is at historic lows – and demand for houses and condos remains strong.

That low-inventory/high-demand dynamic has helped to increase prices so far this year.

Single-family sales were down 26.2 percent in the first quarter of 2023, compared to the same period in 2022, while prices were up 2.2 percent to $510,000, according to data from The Warren Group, publisher of Banker & Tradesman. Meanwhile, condo sales were down about 25 percent in the first quarter, while prices were up 6.7 percent to $480,000.

Current supply-and-demand dynamics continue to produce many crowded open houses, multiple-bid offers, and some buyers agreeing to wave inspections and other contingencies.

But it’s not as much of a seller’s market these days as it was a year or so ago, so there’s fewer packed open houses, multiple-bid situations and buyers agreeing to wave inspections and other contingencies. Higher interest rates have dampened demand a bit and forced many potential buyers to sit on the sidelines during uncertain economic times.

“It’s become a slightly more balanced market,” said Charles George, a Keller Williams broker associate who covers the city of Boston and its immediate suburbs. “There’re still multiple offers out there, but a home has to be priced right to get that type of interest. It won’t attract as much interest if it’s not priced right.”

Eye-Catching Asking Prices

The key to pricing a home right is extensive market research before putting a house or condo up for sale – and convincing the seller not to go for broke when setting an asking price, according to George and other industry players.

“I tell my clients: You have to price to the market,” George said.

If anything, it’s best to set an asking price slightly below the estimated market value in order to attract buyers and drum up enthusiasm for a property.

“We still have sellers who think it’s 2021 and who think they can get whatever they want,” George said. “But a seasoned real estate veteran will explain to them that it needs to be priced right.”

In today’s somewhat topsy-turvy real estate market, getting accurate formal appraisals obviously can be tricky, thus requiring even more research to make sure prices are in line for both sellers and buyers, she said.

“You don’t want to overprice in this market,” Alcorn warned.

Because buyers have slightly more leverage in today’s market compared to years past, Alcorn said she’s seeing fewer buyers waving home inspection, mortgage and other contingencies, though such wavers still abound.

“Buyers are being a little more cautious,” she said.

Matt Czepiel, an agent at Lamacchia Realty in Waltham, said low inventory levels are still driving the market.

“The supply of homes for sale is so low,” he said. “For the most part, it’s still very much a seller’s market.”

As a result, bidding wars are still breaking out across eastern Massachusetts, he said.

But he agreed pricing homes and condos has gotten tougher.

“Most agents and sellers know you can’t be too crazy,” he said. “Prices can’t be foolishly aggressive. You can’t afford to have a property sit on the market too long. People will start wondering why. In 2021, everything sold fast. But that’s not the case now. There’s more caution out there.”

Czepiel said he’s recently sensed the market starting to rev up more in favor of sellers.

“Buyers are starting to drop contingencies again,” he said. “We’ll see how it goes.”