Real Estate Trends – Danvers, Massachusetts

Introduction:

Welcome back for our next market trend report looking at the local real estate markets in Eastern Massachusetts and Southern New Hampshire.  If this is your first time here our goal with these articles is to examine the changes in a local market year over year in the community being highlighted in the article.

Danvers Map - Danvers, MA Real Estate

Today we are highlighting Danvers, MA in Essex County,

Market Trends in Danvers, MA – October 2013 and 2014:

The Danvers, MA market seems to be slowing down since last year with listing and sales prices down and the days on market being up.  The sale volume was up quite a bit in October 2014 with 26 sales vs. 16 in October 2013.  This is a pretty noticeable 62.5%.  This is one of the few municipalities we have looked at so far where there was such a big difference (in either direction) between the numbers of sales year over year.

Average Listing Prices:

For Danvers, MA the average listing price went from $373,600 in October 2013 down to $369,923 in October 2014, for a small decrease of 0.98%.  This is a small decrease that shows that the market is more stagnant than going down in any meaningful way at this point.  It is a clear indicator that the market is not on the rise like in the recent past however.

Average Sale Prices:

Next up is the most important statistic to look at, the average sale prices.  In October 2013 the average sale price for Danvers, MA was $367,150 and then in October 2014 it was down to $357,438. This is a bigger decline than the listing prices at a 2.65% decrease.  This obviously is not huge but is a lot bigger than the list price which is an indicator that the local real estate professionals have not started advising clients to adjust their asking prices downward as the sales are going down.  The next section will show a more obvious example of this effect.

Average Days on Market:

The other major factor that is important when evaluating the market is to see how long it is taking for houses to sell at those prices.  For Danvers, MA the average days on market are up significantly since last year.  In October of 2013 the average days on market were 52.94 but in 2014 they were up to 78.12.  This represents a 47.6% increase. Before talking about what this means I just want to shortly address the issue of skewed data for the days on market.  We have seen in many of our previous posts that 1 or 2 big outliers have skewed one year’s days on market to be much higher.  It is worth noting that in the case of Danvers, MA that is not the case in either year. Okay now that we have addressed that what can we gleam from the higher days on market?  The large increase in volume can be a direct factor here.  If there are more places to choose from buyers have more choices and therefore places that don’t get picked by the pool of buyers at any given time will stay on the market until more people start looking.  This also likely contributes to the phenomena we saw of sales prices dropping fast than the listed prices.  People are hoping to get 2013 prices but after sitting on the market longer than they had hoped they take less than they originally hoped to just sell.

Danvers, Mass Summary:

The Danvers, Massachusetts real estate market has slowed down since last year.  Prices are moving down but have not gone that far yet.  While things might just have flattened out the fact that final sales prices are dropping faster than the listed prices and the properties are sitting longer, along with increased inventory I would guess this is more of the start of a dip. In addition to these numbers we have talked about we can look at an additional metric that also would indicate things are slowing down. The sale to list price ratio is going down a lot.  This isn’t surprising since we already saw that the sales prices dropped more year over year than the listing prices.  It does help quantify this effect though.  In October 2013 places were selling at 98.3% of the listing price but in October 2014 that was down to 96.6%, which is actually a pretty big difference.  If you follow this kind of data 96.6% is actually on the low side over the last few years. In summary if you are looking to sell a house in Danvers, MA now you should expect to get a little less than you would  have last year and should be willing to take a discount off your listed price to avoid sitting on it for a very long time.

 

Do you need to sell your Danvers, 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: Danvers Map via Google Maps)    

 

 

Speak Your Mind

*