Real Estate Trends – Needham, Massachusetts #2

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 Needham, MA in Norfolk County

 Needham MA Town Seal - Needham Massachusetts Real Estate

We first looked at Needham last summer when we saw the market was down noticeably while still being a very high end market.

Market Trends in Needham, MA – February 2015 and 2016:

The Needham, MA market has fallen off significantly since last year.   The average prices were down a lot and the median prices were down even more.  However the days on market appear to be down a lot though, however that might be overstated.  Inventory was fairly stable going from 13 sales in February of 2015 to 12 in February 2016. 

Average Listing Prices:

We will first start off by looking at the average listing price.  In Needham, MA the average listing price in February 2015 was $1,341,992.  This was down to $1,089,556 in February 2016.  This gives a very large decrease of 18.81% year over year. 

Looking at the median prices we see that it was lower in both years.  For February of 2015 the median listing price for Needham, MA was $1,319,900 and in February 2016 it was $999,000 which gives an even larger decrease of 24.31%. 

Average Sale Prices:

The next thing we will be looking at is the average sale prices.  The average sale price for in Needham, MA in February of 2015 was $1,285,635 and in February 2016 that was down to $1,049,983.  That gives a very similar 18.33% decrease compared to the average list price. 

We see a slightly different pattern with the median sale prices as we did for the listing prices.  It was still lower for 2016 but in 2015 it was actually a tiny bit higher than the average.  For February of 2015 the median sales price for Needham, MA was $1,300,000 and in January 2016 it was $949,500 giving the largest decrease we have seen at 26.96%. 

Everything we looked at points to prices being down significantly in Needham, MA this month.  However there is a pretty wide gap in the range of the drop.  The two average pricing metrics were pretty tight and show a drop of about 18.5%.  While very significant that is much smaller than the roughly 24-27% drop indicated by the medians.  Since medians are the more favored way to analyze this type of data that is the more realistic range, and since the median sale price was down the most the prices are most likely down at the top of that range as well.

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 Needham, MA the average days on market in February of 2015 were 186.92 and the average days on market for February 2016 were 110.08 for a pretty sizable 41.11% 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, East Boston (Condos), Dedham #3, Hanover, Canton (Condos), Belmont #2, Seabrook, NH, Hingham (Condos), Lakeville, Raynham, Holliston, Londonderry, NH, Georgetown and South Boston (Condos) outliers in the data can really skew these numbers.  This again is the case for Needham, MA in February.  In this instance there was a very high days on market place in 2015.

In 2015 there was a property with 936 days on market; this was much more than the next 3 properties combined and over 38.5% of the total days on market for all 13 Properties.  When removed the new calculation for the remaining 12 properties gives an average days on market of 124.5. 

Using the adjusted numbers we now get a much smaller decrease of 11.58%.  This does not change the general conclusion of the days on market being down.  However instead of a fairly significant drop the days on market now appear to have fallen a fairly small amount.  It is worth noting that even with a decrease the days on market are still very high and would be considered quite bad both years.

Needham, Massachusetts Summary:

The Needham, Massachusetts real estate market is down significantly since last year.  The average prices were way down and median prices were down even more.  The days on market were down a little though, which is nice for a seller but does not make up for prices that are down that much. 

In summary if you are looking to sell a house in Needham, MA now you should expect to get a lot 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 Needham, 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: Needham MA Seal via Wikipedia)

 

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