Real Estate Trends – Bedford, Massachusetts

Introduction:

This is our latest report on the real estate trends in our target communities in Massachusetts and New Hampshire.  We will show how the market has changed year over year in the municipaltiy that we are spotlighting. The market may improve and you might be able to sell your house for a higher price quickly.  Other times the market has slowed down and prices are on the decline while DOM (days on market) have increased.  When that is the case you may want to sell fast and take less than you originally intended.

Wilson Mill Site - Bedford, MA

Today we are looking at  Bedford, MA in Middlesex County.

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

Overall the Bedford, MA real estate market has slowed down year over year.  Average listing prices have come down and so have the average sale prices, and the DOM are also up significantly.  The overall number of properties sold also decreased quite a bit from 24 to 16.

Average Listing Prices:

In July 2013 the average listing price for Bedford was $732,733; in July 2014 that was down all the way to $689,238. This represents a 5.94% decrease year over year.  That is a very significant change, more so on an absolute dollar value (of over $40K!) than the percentage decrease (which is still significant as well).  This would tend to indicate that people are paying less for homes there this year, and the real estate agents know it.  If the local agents know that prices are going down they will attempt to adjust their priceing recommendations to try to compensate for this.

Average Sale Prices:

In July 2013 the average sale price in Bedford was $726,167; in July 2014 it was down to $673,219. This represents a 7.29% decrease year over year.  Again this is quite a significant decrease at that percentage and you can see the price gap is even mroe jarring at more than $50K less than last year.  The bigger dorp here than for the lsited prices also indicates that the actual prices are dropping faster than the real estate agents are compensating for them 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 Bedford was 33.54; in July 2014 it was up to 49.69. This represents a whopping 48.2% 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.   It should be pointed out that with such small data sets one outlier can really skew the data.  We saw this in our previous report on Abington, MA.  However in this case the highest single days on market were on a place in 2013 and that was more than double the next highest, and actually skewed that set, where taking that out the other houses had an average that was much less at 24.61.  The 2014 set had 1 that was a little shorter than the 2nd longest in 2013.  This data point was only about 25% higher than the next highest so no single house really skewed the 2014 data.  So seeing that the 2013 data is actually somewhat misleadingly high it makes this effect seem even more dramatic than it already was.

Bedford, Mass Summary:

With less sales, higher days on market, lower listing prices and even lower sale prices it is very clear that the Bedford, Massachusetts market has slowed considerably since last year.  In addition to these raw numbers it is also worth noting that in July 2013 the sale price to listing price ratio was 99.1%, which means you pretty much were getting almost full price offers when you were selling.  In 2014 that ratio dropped to 97.7% 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 dramatic. In summary if you are looking to sell your Bedford, 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 Bedford, 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: “Wilson-Mill-Sign Bedford MA“, by Paddling bear via Wikipedia)  

 

 

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