The 2021 spring home market is in full swing, with high demand and low inventory still the norm. Buyers in Massachusetts are adjusting their expectations and taking measures to weight offers in their favor: looking farther afield, prioritizing or going beyond their budget for the right thing – even as some abandon their search altogether. 

Home inspections aren’t the only contingency that many buyers consider optional right now. Some are waiving appraisals or are willing to rent homes back to sellers, amid an inventory of single-family homes for sale in March that was 61.9 percent below March 2020’s totals in Greater Boston, 68.5 percent down in the Pioneer Valley and 77.7 percent down in Cape Cod and the islands, according to the Massachusetts Association of Realtors.  

“It used to be the high-end or luxury market, buyers that were more familiar with the buying,” said Lee Joseph, a Realtor at Coldwell Banker Realty Worcester. Recently, though, she’s seen cash offers and contingency waivers “across the board.”  

Buyers Willing to Travel Farther 

Whether at the outset of their home search or after unsuccessful bids, buyers throughout the commonwealth and across price points are broadening their search areas right now. Arlington-based Nellie Aikenhead, broker/owner of Aikenhead Real Estate, said that while some of her clients are expanding their search areas, it’s not by much. Buyers interested in East Arlington ended up looking in certain parts of Belmont, for example – but the net effect has been negligible.  

In nearby Boston, buyers who would normally look within 1 mile of the city core are looking anywhere from 5 to 20 miles away, said Pauline Bennett, president of Coldwell Banker Realty New England, adding that Interstate 495 has replaced Route 128 as an outer search border. 

Joseph reported a similar widening in the Worcester area. There, buyers are eyeing towns such as Berlin with new interest, despite its few listings, because “it abuts Boylston, it abuts Northborough, or other towns they may have been considering.” 

Buyers on the Cape have begun looking even farther afield, often amid mounting frustration, said Steve Clay, team leader of The Clay Group in North Falmouth. Buyers focused on Falmouth, for example, have started looking in Mashpee, Bourne and Sandwich. For home-hunters unsuccessful in those towns, “Plymouth has come into play,” he said.  

The story of the broadest search area came from Western Massachusetts, where Realtor Alyx Akers of 5 College Realtors in Northampton, recently spoke with a couple entering the housing market. Unable to offer a 20 percent down payment, they’re home shopping throughout Franklin, Hampshire and Hampden counties.  

“That’s a big area,” Akers said, adding that this kind of broad net makes sense right now.  

While not every client will consider three counties, she has seen a shift into more affordable towns such as Longmeadow, Agawam and Wilbraham. 

A Conglomeration of Concessions 

Many of Akers’ buyers are also looking at homes needing work, a trend Aikenhead, in Arlington, echoed, adding that her buyers are all unique. 

“Some people have an absolute priority on location, so they’ll compromise on the house, or the price,” she said. “And some people have an absolute priority for house, and they’ll compromise on location.” 

Akers’ clients won’t settle for smaller. Worcester buyers are most likely to cede amenities such as a garage or a second bathroom. Homes needing some updating are a reasonable fit for those looking for a second home on the Cape earmarked for eventual retirement, Clay said.  

“Time’s on their side, because they’re only here weekends and vacations,” he said. “Once it becomes their year-round home, then they probably want to do the work then.” 

For the most part, Aikenhead’s buyers are compromising on price, paying more than they’d planned. Not every buyer can override their budget, but she noted that her clients are highly paid. As a result, Aikenhead has worked on multiple million-dollar transactions in recent months. She’s “always had a few each year,” she said, but never this many.” 

And while a house needing a bit of work might do for a portion of buyers, those seeking a true fixer-upper should change tactics, the agents interviewed by Banker & Tradesman advised. Contractors and builders look at those properties with equal interest, they said, and are likely to beat out other buyers. Builders “know the pricing of what these items are going to be, and don’t have to waste time trying to reach out to find people who can help them with the pricing,” Joseph said.  

Even homes that are in good shape, but less than perfect, are hot commodities worthy of full price, or more.  

“It’s too competitive,” Aikenhead said 

Before the pandemic in 2019, 10 homes easily be on the market in the Worcester area for $200,000 to $250,000 price range, Joseph said.  

“Now, if one comes on the market, there’s tons of interest,” she said.  

That’s why pristine properties are often getting way over asking price, she added. 

Aikenhead and Joseph said that, compared with the pre-pandemic market, more buyers are compromising as they look for a home, and they’re relinquishing more of what they want than their pre-pandemic homebuying peers. 

This spring’s buyers are prioritizing outdoor space among the qualities they want most in a single-family home

Renovation Interest Grows 

Recently, Akers has experienced a new pattern: Clients who bought their Berkshires homes early in the pandemic under pressure to act fast are contacting her anew.  

“[They’ve realized] ‘We paid X number of dollars over asking price, and we want to improve the house for our own enjoyment’” while planning to sell the house in five or 10 years, she said, and they want her input. 

For the most part, agents haven’t experienced a recent uptick in current buyers seeking advice on contractors and renovations. Clay noted that, influenced by HGTV and other real estate shows, many buyers come into the process with firm aesthetic and design ideas. Nonetheless, agents remain comfortable connecting clients with the home improvement professionals they need.  

And Coldwell Banker Realty New England, noticing that buyers are struggling to secure contractors to get their new homes just right, is exploring a tweak to its RealVitalize program. RealVitalize connects sellers with HomeAdvisor, a digital marketplace of prescreened contractors, as they renovate ahead of selling. Coldwell Banker is exploring the possibility of expanding it to include buyers.  

“That is in discussion,” company president Bennet said. “It’s definitely been on our radar screen.”  

Statewide, buyers’ one clear, non-negotiable right now is outdoor space, while people will bid more for certain things. On the Cape, that’s a good-condition home in a great location, while Akers’ clients are upping their price limit for a home that “checks all the boxes,” she said. Around Worcester, Joseph’s buyers will pay more for a home that feels large enough.  

As challenging as the market is for buyers, most seem to be adapting, rather than cancelling, their searches. Akers sees many buyers trying to buy, pulling back, then tentatively re-entering the market.  

“We will lose some of them for now, but they’ll probably be back within a year, I think,” she said.