Real Estate Trends – Andover, Massachusetts (Condos)

 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 Andover, MA in Essex County

 

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

The Andover, MA condo market has fallen off a lot since last year.   The average prices are down and the median prices were down much more.  However the days on market were down some.  Inventory was up a little with 6 sales in May of 2015 down to 8 in May 2016. 

Average Listing Prices:

We will first start off by looking at the average listing price.  In Andover, MA the average listing price for a condo in May 2015 was $618,783.  This was down to $542,663 in May 2016.  This gives a sizable decrease of 12.30% year over year. 

Looking at the median prices we see that they were higher in 2015 and lower in 2016.  For May of 2015 the median listing price for condos in Andover, MA was $661,400 and in May 2016 it was $358,700 which now gives a tremendously large decrease of 45.77%! 

Average Sale Prices:

The next thing we will be looking at is the average sale prices.  The average sale price for a condo in Andover, MA in May of 2015 was $610,967 and in May 2016 that was down to $541,386.  That gives another fairly high decrease of 11.39%, slightly lower than we saw for 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 an Andover, MA condo was $639,950 and in May 2016 it was $356,000 giving another substantially larger decrease of 44.37%. 

Prices have gone down quite a bit for condos in Andover, MA in May.  The range was pretty large going from roughly 11.5-46% down.  We see two very different stories if we look at the averages or if we look at the medians.  The average prices were down a fairly large amount from about 11.5-12.5%, however the medians had the bottom fall out with drops from almost 44.5% to just under 46%.  Medians are usually the preferred method but with such big drops there and such a large discrepancy between those and the averages we do want to look a little closer at the data.  In this case the thought that a few outlier sales can really affect the averages more than the medians looks to hold up.  Two of the three lowest overall sales were in 2015 and two of the three largest sales were in 2016 (all 3 happened to be for $1.25M).  So in this case those two high ones dramatically increased the average while the other 6 were all much less than the 2015 average or median (or the 2015 average if you take out the high one there to limit that effect).  Despite being a little critical of the huge drops in the median prices it does appear that they are the better representation of the price drops this month.  However with all that being said they may be overstating things to some extent.  Since with these fairly small number of sales the medians can be a little more volatile so while the data alone says that prices are down around 45%, it may be slightly better though we would be talking high 30s to just over 40%, so not really much help if you are looking to sell now.

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 Andover, MA condos the average days on market in May of 2015 were 110.17 and the average days on market for May 2016 were 69.38 for a pretty good 37.02% decrease.

Andover, Massachusetts Summary:

The Andover, Massachusetts condo real estate market is down a significant amount since last year.  The average prices were down some while the median prices were down significantly more.  The days on market were down a bit, however not nearly enough to start to counteract the tremendous price drops, and do not affect the conclusion of a down market.

In summary if you are looking to sell a condo in Andover, MA now you should expect to get much less for it than you would have gotten last year.  You could also expect it to take a little less time to sell compared to last year as well. 

 

Do you need to sell your Andover, 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: Andover MA Old Town Hall by Fletcher6 via Wikipedia)

 

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