Real Estate Trends – Dedham, Massachusetts

Introduction:

We are back for our latest real estate market trend report.  Within these reports we examine a town in Massachusetts or New Hampshire and its real estate market.  For those of you that have not seen one of these reports before, what we do is look at the town’s year over year change in the real estate market and talk about those observations and what they mean for the market.

Dedham Flag - Dedham Massachusetts Real Estate

Today we are highlighting Dedham, MA in Norfolk County.

Market Trends in Dedham, MA – December 2013 and 2014:

The Dedham, MA market has slowed dramatically since last year.  Both the listing and sales prices are down significantly.  The days on market have not changed that much though.  Inventory was up a lot with 17 sales in December of 2013 and 25 in December 2014. Dedham, MA is one of those Greater Boston towns that has been hot the last couple years and many would think still is.  Seeing some of this data shows that even some of the places right by the HUB of the universe are starting to see a break from the sky high appreciation recently.

Average Listing Prices:

The initial metric we like to look at is the average listing price.  For Dedham, MA the average list price was $541,494 for December 2013.  This decreased all the way down to $471,596 in December 2014.  This gives a very large decrease of 12.91%.

Average Sale Prices:

The next metric we look at is the average sale prices.  For December of 2013 the average sale price for Dedham, MA was $530,747 and by December 2014 that was down to $450,660.  That would be an even larger decrease of 15.09%.  With sale prices falling even faster than the listing prices it could indicate the market is moving down quick and local real estate agents are not doing great keeping pace with that trend.

Average Days on Market:

Then finally we look at are the days on market.  The days of market (DOM) is a measure of how long it is takes for a house to sell in the market.  For Dedham, MA the average days on market in December of 2013 was 69.29 and the average days on market for December 2014 were 71.56, for a negligible 3.28% increase. However, as we have seen in several of our previous posts for the municipalities of Abington, BedfordSeekonk, Belmont, Topsfield, Canton, Dracut (Condos)Hamilton, Wakefield, Amesbury (Condos), Dracut #2, Taunton, Reading, Stoughton , Wrentham and Stoneham an outlier can really skew the data.  That again is the case for Dedham, MA.  In this case it is the 2014 data that is skewed.  We will see that this actually changes the observation that days on market are up. In 2014 there was one place that was very high at 422 days, this was just slightly less than 130 more than the next highest, which itself was a bit higher than the next few.  When we remove this point the other 24 houses were left with an average of 56.96.  Using this instead we see that they decreased by 17.79%.  So if you believe that point is an outlier the DOM was actually down, which gives home owners at least some silver lining.

Dedham, Mass Summary:

The Dedham, Massachusetts real estate market has cooled off dramatically since last year.  The double digit declines in both listed and sale prices make this very clear.  Though somewhat surprisingly this was not accompanied by a sizable increase in the days on market, as is often the case. In summary if you are looking to sell a house in Dedham, MA now you should expect to get quite a bit less for it than you would have last year.  However you should not need to take a large discount off of your initial price to avoid sitting on it for a longer time if you have it priced well since things are still moving, just at much lower prices.

 

Do you need to sell your Dedham, 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: Dedham Flag from Briancua via Wikipedia)    

 

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