West Side hot real estate market

WORCESTER — Houses are selling quickly on the West Side of Worcester. So rapidly, in fact, that realtor.com ranks the 01602 ZIP code as the eighth hottest housing market in the country.

The realtor.com economics team viewed ZIP codes in the 300 largest metropolitan areas from April through June, and ranked them by which ones received the most page views per property on realtor.com and lasted the fewest days on the market.

Homes in the top 10 sold in an average of just 18 days, four weeks faster than homes in their respective metropolitan areas and 51 days faster than homes in the rest of the country. They also received about 4.3 times more views on realtor.com.

Realtor.com reported that homes in the 01602 ZIP code, which includes Tatnuck Square, Doherty Memorial High School and Worcester State University, sell in a median 17 days, but local real estate agents say most homes sell even faster. Realtor.com also calculated that the median list price in the 01602 ZIP code is $329,950, compared to $315,050 for the entire city.

Jeff Burk, owner of Re-Max Vision agencies in Worcester and Shrewsbury, lives in the 01602 ZIP code and said that section of the city is desirable because it has a suburban feel with tree-lined streets, few large businesses and a variety of properties to offer, including single-family homes, multifamily homes and condos. Burk said single-family homes in the ZIP code sell from $250,000 for a small ranch that needs work up to nearly $600,000 for a 3,000-square-foot early 1900s brick Tudor or colonial. A two-bedroom condo would sell for $140,000. Burk said his offices sold about a dozen homes in 01602 in April, May and June, and about six or eight since.

Potential buyers vastly outnumber sellers, so houses don’t last long on the market.

“We’re seeing a lack of inventory, so that’s what’s creating this hot market,” Burk said, “and we’re seeing prices increase as well.”

Prices may be rising, but interest rates are low. The 30-year fixed mortgage rate is only about 3%.

Burk said a home could have 15 showings within three days and in many cases the offers are higher than the list price. Often, sellers receive deposits within a week, two at the most. Homes under $400,000 sell the fastest.

People had begun to move west from the Boston area prior to the pandemic, but have embraced Worcester and the 01602 ZIP code even more since COVID-19 hit.

“You hear the stories about people being priced out of Boston,” said District 5 City Councilor Matthew E. Wally, who lives in the ZIP code, “and when they’re looking to buy, Worcester certainly is an attractive option.”

More people are working from home so they can pay less for homes in Worcester and not have to commute to their jobs in the Boston area.

“I think we’ll see that trend over the next year,” Burk said. “Who knows after that, because everything changes.”

The housing market slowed because of the pandemic earlier in the year, but picked up as the weather warmed up. Burk said his real estate agents continue to wear masks and gloves and keep sanitizer on site. They also allow home visits by potential buyers by appointment only to maintain social distancing.

Burk rates the housing market as the hottest since 2005.

Joy Rapsomanikis owns HJ Realty Group in the 01602 ZIP code with her husband, George, and they live in that section of the city as well.

“It’s the best part of Worcester,” she said. “It feels like a suburb, but it’s still part of Worcester.”

Rapsomanikis admitted she was surprised to hear that 01602 is ranked as the eighth hottest housing market in the country.

“This is a crazy, crazy market,” Rapsomanikis said. “It’s stressful. Honestly, I don’t like it.”

Rapsomanikis said there aren’t enough houses available in 01602 and she feels sorry for customers whose offers aren’t accepted.

“It’s very stressful,” she said. “In the end only one person gets it.”

She said buyers often not only pay more than the asking price, they sometimes waive the home inspection in order to seal the deal. Some pay cash. Some homes sell in a day. Those who get outbid for one home move on to the next.

“They’re all the same buyers just kind of moving along,” she said.

Rapsomanikis said a 5-year-old house on Brantwood Road was listed at $369,990, but sold for $390,000 with no inspection, even though only three people viewed it because of a tornado watch.

Wally pointed to the safety of the neighborhoods, the amenities, the restaurants and the improved parks as just a few of the reasons the 01602 section is so popular.

The 80911 ZIP code in Colorado Springs, Colorado, where homes sold in a median six days for $306,500, is ranked No. 1. The rest of the top 10 is: 2. Reynoldsburg, Ohio, (43068 ZIP code, $193,450), 3. Rochester, New York (14617, $162,450), 4. Melrose (02176, $644,950), 5. South Portland, Maine (04106, $350,050), 6. Topeka, Kansas (66614, $159,500), 7. Hudson, New Hampshire (03051, $440,000, 8. Worcester (01602, $329,950), 9. Springfield, Virginia (22152, $509,950), 10. Raleigh, North Carolina (27604, $287,950).

Contact Bill Doyle at william.doyle@telegram.com. Follow him on Twitter@BillDoyle15