Real Estate Trends – Gloucester, Massachusetts (Condos)

Introduction:

Welcome back again for our latest real estate market trend report.  For those of you that are here for the first time what we do in these reports is examine the real estate market in a city or town in Massachusetts or New Hampshire to evaluate the current conditions.  We do this by looking at the changes in three key metrics year over year for the municipality to see how the market has changed and then evaluate what those observations might mean for that market moving forward.

Today we are highlighting the Condo market in Gloucester, MA in Essex County

 Gloucester MA Fisherman Memorial - Gloucester Massachusetts Real Estate

Market Trends in Gloucester, MA – August 2014 and 2015:

The Gloucester, MA condo market has fallen hard compared to last year.   The average listing and sale prices and the median prices are all down by large amounts.  The days on market appear to be down a little, but not as much as they first appear.  Inventory was up a bit going from 9 sales in August of 2014 up to 13 in August 2015. 

Average Listing Prices:

To start off first we are going to look at the average listing price.  For condos in Gloucester, MA the average listing price in August 2014 was $553,978.  This was down to $365,161 in August 2015.  This gives a tremendous decrease of 35.08% year over year. 

With this big of a difference we make sure to look at the median prices as well.  Also in this case taking a quick look at the median prices we see that they are quite a bit different than the averages.  For August of 2014 the median listing price for a condo in Gloucester, MA was $639,900 and in August 2015 it was $324,900 which now gives a much larger 49.23% decline!

Average Sale Prices:

Next up we will be looking at is the average sale prices.  The average sale price for a condo in Gloucester, MA in August of 2014 was $544,044 and in August 2015 that was down to $359,705.  That gives another huge 33.88% decrease. 

We see the same pattern with the median sale prices as we did for the listing prices.  For August of 2014 the median sales price for Gloucester, MA was $620,000 and in August 2015 it was $314,500 giving another much larger 49.27% decrease. 

It is not hard to conclude that prices are way down for Gloucester, MA condos.  No matter how you look at things they are down a lot with average prices being down over a third and median prices half of what they were this time last year. 

Average Days on Market:

Finally the last metric we look at are the average days on market, which is the measure of how long it takes for a house to sell in the current market.  For Gloucester, MA condos the average days on market in August of 2014 were 257.56 and the average days on market for August 2015 were 119.69, for a fairly significant 53.53% decrease. 

However, as we have seen many times before in our previous posts for AbingtonBedfordSeekonk, BelmontTopsfieldCanton,  Dracut (Condos)HamiltonWakefield, Amesbury (Condos), Dracut #2, Taunton, Reading, Stoughton, Wrentham, Stoneham, Dedham, Nashua, NH, Tewksbury, Brockton (Multifamily), Lowell (Multifamily), Acton, Foxboro, Pembroke, Chelmsford, BeverlyFramingham (Condos), Plymouth County (Condos), Marlborough, Billerica, Waltham, Dracut (Condos) #2, Derry, NH, Framingham, Burlington, Duxbury, Acton #2 , Taunton (Condos), Tyngsborough, Milton, Salem, NH, Boston’s Hyde Park, Boston’s West Roxbury , Somerville, Canton #3, Pelham, NH, Westford, Plymouth (Condos), Boston’s Jamaica Plain , Halifax,Braintree (Condos), Newton (Multifamily), Plainville ,Boxford, Wayland , West Bridgewater, East Bridgewater, Marlborough (Condos) and Natick (Condos) outliers in the data can really skew these numbers.  This again is the case for Gloucester, MA condos in August.  In this instance there were very high days on market places in both the 2014 and 2015 data.

In 2014 there was a property with 1082 days on market; this was more than the next 5 properties combined and was almost 47% of the total days on market for all 9 condos.  When removed the new calculation for the remaining 8 properties gives an average days on market of 154.50. 

In 2015 there was a property with 411 days on market; this was as much as the next 2 properties combined and with over 26% of the total days on market for all 13 condos.  When removed the new calculation for the remaining 12 properties gives an average days on market of 95.42. 

Using the adjusted numbers we still see a similarly significant 38.24% decrease.  This does not change the general thought since they looked to be down a lot to start, but now it looks like they are not down by quite as much as before.  While the change is definitely large it is worth pointing out that all the days on market numbers, adjusted or not, for both years were terrible for Gloucester, MA condos this month.

Gloucester, Mass Summary:

The Gloucester, Massachusetts condo real estate market is down a lot since last year.  The average prices and the median prices were both down by huge amounts.  While the days on market were down a decent amount this does not at all counteract the giant price drops.  Also while nice to see if you are selling, as noted in that section even the lower adjusted number for 2015 is still considered to be very high so the big change amounts to going from really bad to just bad.   

In summary if you are looking to sell a condo in Gloucester, MA now you should expect to get much less for it than you would have gotten last year.  You should also expect it to take less time to sell compared to last year though, but still could take a very long time.  With such high days on market sellers may want to consider pricing places even a little lower than the new sharply discounted levels to stand out and sell a bit faster than normal. 

 

Do you need to sell your Gloucester, Massachusetts condo 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: Gloucester MA – Fisherman’s Memorial by Paul Keleher via Wikipedia)

 

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