Real Estate Trends – Natick, Massachusetts (Condos) #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 highlighting the Condo market in Natick, MA in Middlesex County

 Natick MA Town Center - Natick Massachusetts Real Estate

We looked at Natick Condos back at the end of last summer and saw pretty flat average prices but much more significant drops in the medians.

Market Trends in Natick, MA – April 2015 and 2016:

The Natick, MA condo market has fallen off significantly since last year.   The average prices were down a lot and the median prices were down even more substantially.  The days on market were down a bit though.  Inventory was up a little with 10 sales in April of 2015 up to 12 in April 2016. 

Average Listing Prices:

We will first start off by looking at the average listing price.  For the Natick, MA condo market the average listing price in April 2015 was $437,740.  This was down to $373,108 in April 2016.  This gives a large decrease of 14.76% year over year. 

Looking at the median prices we see that they were a lot higher in 2015 and a lot lower in 2016.  For April of 2015 the median listing price for Natick, MA condos was $474,450 and in April 2016 it was $245,900 which now gives an incredibly large decrease of 48.17%. 

Average Sale Prices:

The next thing we will be looking at is the average sale prices.  The average sale price for a condo in Natick, MA in April of 2015 was $433,650 and in April 2016 that was down to $369,058.  That gives another large decrease of 14.89%, and very similar to the average list price. 

We see the same pattern that we did for the median list price.  For April of 2015 the median sales price for Natick, MA condos was $474,900 and in April 2016 it was $241,000 giving another ridiculously large decrease of 49.25%. 

Prices are down significantly for condos in Natick, MA this month.  The observations are of a similar nature to the last time we looked at Natick Condos with the medians being down much more than the averages, but in that case the averages were fairly flat with only tiny changes and the medians were down in the just over 10% range.  Obviously the magnitude we see here is much more dramatic.  At a minimum prices are down the roughly 15% indicated by the average prices.  However medians are the more favored metric and those indicate drops of almost 50%.  That is pretty extreme and in this case it makes sense to look past the 2 numbers and more at the overall data.  In this case there are 2 pricey sales in 2016 that definitely skewed the average way up, which is why medians are usually favored.  However there were also a much larger number of small units sold in 2016 as well, which hurt the median price more since these were all on the lower end of the prices.  So for this particular market this month I do not believe either of those numbers completely and would say that a 15% is too low but a 50% one is much too high.  Looking at the data I would think that the drop is much more likely to be in the higher 20s to low 30s, which of course is still huge but a little more realistic than 50%.

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 condos in Natick, MA the average days on market in April of 2015 were 78.10 and the average days on market for April 2016 were 40.33 for a very substantial 48.36% decrease.

Natick, Massachusetts Summary:

The Natick, Massachusetts real estate condo market is down substantially since last year.  The average prices were down a lot and the median prices were down by much larger margins than that.  The days on market were down a lot though.  While a nice piece of information for current home sellers it is not enough to compensate for the tremendous price drops when determining that the market is down a lot.

In summary if you are looking to sell a Condo in Natick, MA now you should expect to get much 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 as well. 

 

Do you need to sell your Natick, 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: Natick MA Center by Marcbela via Wikipedia)

 

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