Real Estate Trends – Marlborough, Massachusetts

Introduction:

We are back for another real estate market trend report.  Thanks for joining us and if this is your first time reading one of these reports, we examine a city or town in Massachusetts or New Hampshire to evaluate its current real estate market.  We do this by looking at the municipality’s year over year change in the real estate market and evaluate what those observations mean for that market moving forward.

Today we are highlighting Marlborough, MA in Middlesex County.

Market Trends in Marlborough, MA – February 2014 and 2015:

The Marlborough, MA market has dropped significantly since last year.  Both the average listing and average sales prices were down a sizable amount.  The days on market appeared down at first glance but that appears to be deceiving, as we saw recently on at article on Beverly, MA.  Inventory was up with 10 sales in February of 2014 and 14 sales in February 2015.

Average Listing Prices:

The first thing we look at is the average listing price.  For Marlborough, MA in February 2014 the average list price was $367,760.  This was down dramatically to $290,164 in February 2015.  That gives an extremely large decline of 21.10%.  This is a huge drop.

Average Sale Prices:

The next thing we will be looking into is the average sale prices.  The average sale price for Marlborough, MA in February of 2014 was $367,410 and in February 2015 that was way down to $281,600.  That gives a slightly larger decrease of 23.36%.  Despite the tumbling listing prices the sales are falling even a bit faster.

Average Days on Market:

Finally we look at the average days on market, a measure of how long it takes for a house to sell in the market.  For Marlborough, MA the average days on market in February of 2014 were 196.60 and the average days on market for February 2015 were 130.36, for a healthy 33.69% decrease. However, as we have seen many, many times before in our previous posts for AbingtonBedford, Seekonk, BelmontTopsfield, Canton,  Dracut (Condos)HamiltonWakefield, Amesbury (Condos), Dracut #2, Taunton, Reading, Stoughton, Wrentham, Stoneham, Dedham, Nashua, NH , Tewksbury, Brockton (Multifamily), Lowell (Multifamily), Acton, Foxboro, Pembroke, Chelmsford, Beverly,  Framingham (Condos), and Plymouth County (Condos) outliers in the data can skew things significantly.  This is the case for Marlborough, MA once again.  In this case there was a very high days on market house in the 2014 data. In 2014 there was a house with 860 days on market.  This was more than the next four highest combined, and only slightly less than the next five.  When removed from the calculation you have the remaining 9 houses with an average days on market of 128.89, a very significant decrease, and is now lower than the 2015 days on market.  Using this adjusted number we see the decent decrease now become a tiny 1.13% increase.  This of course totally changes the general observation since now it appears that the days on market are basically flat year over year.  While it would be more encouraging for house sellers for there to be a decrease, flat is still better than the other metrics for them. It is also worth noting that these are all very high days on market numbers.  Be it up, down or flat houses are sitting on the market for over 4 months on average and many much longer.  Even the “fast” moving houses are not impressive with the lowest one in February of 2014 being 25 and in 2015 it was 26.

Marlborough, Mass Summary:

The Marlborough, Massachusetts real estate market looks like is has really fallen off since last year.  The huge drop in listing prices and sale prices illustrate this dramatically.  The flat, but very high, days on market are of little consequence with those kinds of price declines.  It is hard to say if the market has crashed or if this is just a very bad month and we will see a more stable market in the coming months. In summary if you are looking to sell a house in Marlborough, MA now you should expect to get significantly less for it than you would have last year.  You also be ready to take a big discount to avoid sitting on it for too long.  

 

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

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(Image credit: Marlborough Mass City Hall via Wikipedia)    

 

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