Real Estate Trends – Newton, 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 highlighting the market in Newton, MA in Middlesex County

 Newton MA City Hall - Newton Massachusetts Real Estate

We first checked out Newton, MA single family homes back in February and this is the 4th time we have looked at Newton overall.

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

The Newton, MA market has fallen off since last year.   The average prices are down and the median prices were down as well.  The days on market were down quite a bit though.  Inventory was down a little with 54 sales in May of 2015 down to 47 in May 2016. 

Average Listing Prices:

We will first start off by looking at the average listing price.  In Newton, MA the average listing price in May 2015 was $1,437,476.  This was down to $1,142,051 in May 2016.  This gives a very sizable decrease of 20.55% year over year. 

Looking at the median prices we see that they were lower in both years.  For May of 2015 the median listing price for Newton, MA was $1,265,000 and in May 2016 it was $999,000 which now gives a slightly larger decrease of 21.03%. 

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 May of 2015 was $1,413,589 and in May 2016 that was down to $1,152,880.  That gives another sizable decrease of 18.44%, but a little smaller than the average list price. 

We see the same pattern that we did for the median list price.  For May of 2015 the median sales price for Newton, MA was $1,265,000 and in May 2016 it was $1,062,500 giving another large decrease of 16.01 %, a bit less than the median list price and the lowest drop of the 4.

Prices are down a good bit for Newton, MA this month.  The pattern here is that the drop in sale prices is a little lower than the listing prices, instead of the more common situation where the medians and averages track well with each other.  The lesser drops in sale prices is caused by the fact that in 2016 there were several above asking price sales in the middle of the range which allowed both the average and median sales price to be above the listing prices.  While prices are down this is actually a silver lining showing that a well priced home is still clearly in demand around the median prices.  So overall prices are down a lot ranging from 16-21%.  Medians are the preferred analysis tool for evaluating real estate prices so we will put more weight there, but since they are the high and the low the fact that sales are far more important to look at than listings the drop is probably much closer to the just a hair over 16% seen with the median sale price instead of the over 20% drops seen with both listing prices or even the ~18.5% drop seen with the average sale 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 May of 2015 were 50.31 and the average days on market for May 2016 were 39.32 for a fairly moderate 21.84% decrease.

Newton, Massachusetts Summary:

The Newton, Massachusetts real estate market is down a bit since last year.  The average prices were down quite a bit while the median prices were down a lot as well.  The days on market were down some however.

In summary if you are looking to sell a house in Newton, MA now you should expect to get a lot less for it than you would have gotten last year.  However you could also expect it to take 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: Newton City Hall via Massachusetts Peace Action)

 

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