Real Estate Trends – Dedham, Massachusetts #3

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 once again highlighting the market in Dedham, MA in Norfolk County

 Dedham MA Town Seal - Dedham Massachusetts Real Estate

We have looked at the Dedham, MA market a couple of other times earlier this year in January and then again in April.  The market was down considerably in both of those reports so read on to see if that pattern continues or if things have reversed.

Market Trends in Dedham, MA – November 2014 and 2015:

The Dedham, MA market has fallen off a bit since last year.   The average prices were both down a lot.  The median prices were down significantly as well.  However the days on market appear to be down some though.  Inventory was down slightly with 17 sales in November of 2014 and 14 in November 2015. 

Average Listing Prices:

To start off first we are going to look at the average listing price.  For Dedham, MA the average listing price in November 2014 was $430,241.  This was down to $392,893 in November 2015.  This gives a noticeable decrease of 8.68% year over year. 

Looking at the median prices we see that it was not that much different in 2014 but a lot lower than the average in 2015.  For November of 2014 the median listing price for Dedham, MA was $439,900 and in November 2015 it was $369,900 which now gives a substantially larger decrease of 15.91%.

Average Sale Prices:

Next up we will be looking at is the average sale prices.  The average sale price for Dedham, MA in November of 2014 was $422,412 and in November 2015 that was down to $388,531.  That gives a fairly similar 8.02% decrease compared to the average listing price. 

We see a similar pattern with the median sale prices as we did for the listing prices for both years.  For November of 2014 the median sales price for Dedham, MA was $437,000 and in November 2015 it was $358,500 giving another significantly larger decrease of 17.96%, which is the largest drop seen in the four metrics examined.

Prices are definitely down some in Dedham, MA this month.  We easily conclude that they are down somewhere in the 8-18% range.  Of course that is a pretty large range!  Since median prices are the preferred metric in real estate price analysis, and those showed a drop of more like 16-18%, it is very reasonable to conclude the prices are more likely down near the top of that range.

In the case of Dedham, MA this is the 3rd time we have looked at it in just under a year so seeing how prices have trended during the year is interesting too.  Looking back to our article in January we see the December 2014 average sale price was $450,660 (which was a 15% decrease from 2013) and our article in April showed the March 2015 average price was $398,050 (which was an 8.5% decrease from March of 2014).  So the average sale price had decreased 11.67% between these 2 months, which is surprising since December is probably the worst month to sell a house while March is right when the market is ramping up to the best time.  We also see this month an average sale price of $388,531 for another 2.39% drop from the March numbers and 13.79% since December.  Admittedly these timeframes are very arbitrary however it does show a pretty consistent pattern of prices not only falling over the same month year over year but also falling throughout the 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 property to sell in the current market.  For Dedham, MA the average days on market in November of 2014 were 46.65 and the average days on market for November 2015 were 37.57 for a nice 19.46% 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), Natick (Condos), Gloucester, (Condos), Melrose (Condos), Norton (Condos), Newburyport, Atkinson, NH, Fairhaven, Lexington, Arlington (Condos), Salisbury, Weston, Groton, Wellesley, Littleton, Lowell (Condos) #2 and East Boston (Condos) outliers in the data can really skew these numbers.  This again is the case for Dedham, MA in November.  In this instance there was a very high days on market place in the 2015 data.

In 2015 there was a property with 183 days on market; this was more than the next 3 properties combined and almost 35% of the total days on market for all 14 Properties.  When removed the new calculation for the remaining 13 properties gives an average days on market of 26.38. 

Using the adjusted numbers we now see a much larger decrease of 43.45%.  This does not change the general conclusion of the days on market being down.  However, now rather than being down a modest amount they appear to actually be down fairly significantly.  This by the way is fairly surprising given the drops we saw in prices.

Dedham, Mass Summary:

The Dedham, Massachusetts real estate market is down a bit since last year.  The average prices were down some and median prices were down by quite a lot.  The days on market were down a lot though, which is a counter argument to the weakening market.  However, while this is nice to have for homeowners that are looking at getting significantly less for their houses, the sellers are looking at getting significantly less for their houses which is all that matters in the end. 

In summary if you are looking to sell a property in Dedham, MA now you should expect to get a good bit less for it than you would have gotten last year.  However you can also expect it to take a lot less time to sell compared to last year. 

 

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 MA Seal via Wikipedia)

 

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