Real Estate Trends – Dracut, Massachusetts

Introduction:

This is the first of many reports we will publish on the real estate trends in our target communities in Eastern Massachusetts and Southern New Hampshire.  Our goal is to show how the market has changed year over year in the town we are spotlighting. Sometimes the market may be improving and you can sell your house for a higher retail price quickly.  Other times the market has slowed down and prices are declining while day on market are increasing.  In those cases you may want to sell fast and take less than you thought you would be asking (since you are less likely to get that high anyway). Dracut, MA Library

Market Trends in Dracut, MA – July 2013 and 2014:

Overall the Dracut market has slowed down noticeably year over year.  Average listing prices are down as are the average sale prices, day on market are also up significantly.  The overall number of properties sold also decreased from 38 to 32.

Average Listing Prices:

In July 2013 the average listing price in Dracut was $300,028; in July 2014 it was down to $287,533. This represents a 4.2% decrease year over year.  That is a fairly significant change.  This would tend to indicate that people are paying less, and the real estate agents know it.  If the local agents know that prices are going down they are adjusting their price recommendations to try to not overprice their listings.

Average Sale Prices:

In July 2013 the average sale price in Dracut was $298,096; in July 2014 it was down to $281,952. This represents a 5.4% decrease year over year.  Again this is a fairly significant decrease.  It also would indicate that the actual prices are dropping faster than the real estate agents are compensating for with the decreased listing prices.  This also is supported by the increase in the average days on market discussed next.

Average Days on Market:

In July 2013 the average days on market in Dracut was 45.87; in July 2014 it was up to 70.53. This represents a whopping 53.8% increase year over year.  This is obviously a huge increase!  This would indicate that listings are overpriced and sale prices are going down faster than real estate agents are compensating for the changes in the market.

Dracut, Mass Summary:

With less sales, higher days on market, lower listing prices and even lower sale prices it is clear that the Dracut, Massachusetts market has slowed considerably year over year.  In addition to these raw numbers it is also worth noting that in July 2013 the sale price to listing price ratio was 99.4%, which means you pretty much were getting almost full price offers when you were selling.  In 2014 that ratio dropped to 98.1% which while still quite high does show that sellers are also taking bigger discounts off of their listing prices to get things sold.  It is also worth noting that the listing prices are the listing at the time of sale, not the original listing price.  So with the higher days on market it is more likely that these homes also had more price drops which would make this ratio using original listed prices even more. In summary if you are looking to sell your Dracut, MA home now you should expect to get less than you might have expected and should be willing to take a bigger discount off your listed price or be prepared for it so sit for several months before selling.

 

Do you need to sell your Dracut, Massachusetts house fast?  If you would like to sell your home fast and hassle free schedule a consultation with us today.

Please share your questions and comments below.

 

 

(Image credit:  Town of Dracut’s website)

 

 

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