Real Estate Trends – Newton, Massachusetts

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 market in Newton, MA in Middlesex County

 Union Street in Newton MA - Newton Massachusetts Real Estate

In the past we reviewed Newton’s Condo Market and also it’s Multifamily Market but this is the first time we have looked at the single family market.

Market Trends in Newton, MA – January 2015 and 2016:

The Newton, MA market has fallen a little since last year.   The average prices were down a lot and the median prices were down as well.  The days on market appear to be down a bit though.  Inventory dropped substantially going down from 40 sales in January of 2015 to 25 in January 2016. 

Average Listing Prices:

We will first start off by looking at the average listing price.  In Newton, MA the average listing price in January 2015 was $1,447,295.  This was down to $1,309,396 in January 2016.  This gives a sizable decrease of 9.53% year over year. 

Looking at the median prices we see that they were a bit lower in both years.  For January of 2015 the median listing price for Newton, MA was $1,125,000 and in January 2016 it was $1,100,000 which gives a much smaller decrease of 2.22%. 

Average Sale Prices:

The next thing we will be looking at is the average sale prices.  The average sale price for in Newton, MA in January of 2015 was $1,412,862 and in January 2016 that was down to $1,256,400.  That gives a bigger 11.07% decrease compared to the average list price. 

We see the same pattern with the median sale prices as we did for the listing prices.  For January of 2015 the median sales price for Newton, MA was $1,155,000 and in January 2016 it was $1,100,000 giving another smaller decrease of 4.76%. 

All the metrics we looked at show that prices are down at least some for Newton, MA in January.  The averages were down a pretty sizable amount, however the medians quite a bit less.  Since medians are generally much more favored in doing this kind of analysis we will give a bit more weight to those over the corresponding average value.  Since ultimately sales are more important we also give more weight to the larger drop seen in the median sales price vs. that of the median listing price.  So while the averages say that prices could be down over 10% it seems more likely they are down around 5% as seen with that change in the median sales price.

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 Newton, MA the average days on market in January of 2015 were 63.35 and the average days on market for January 2016 were 52.56 for a modest 17.05% decrease. 

Newton, Mass Summary:

The Newton, Massachusetts real estate market is down since last year.  The average prices were way down.  The median prices were also down but by a bit less.  The days on market were down a little though.

In summary if you are looking to sell a house in Newton, MA now you should expect to get less for it than you would have gotten last year.  However, you can also expect it to take a little less time to sell compared to last year as well. 

 

Do you need to sell your Newton, 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: Union Street in Newton Center via Wikipedia)

 

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