Real Estate Trends – Bedford, 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 Bedford, MA in Middlesex County

 Bedford MA Flag - Bedford Massachusetts Real Estate

It has been a long time since we have looked at Bedford, MA.  It was the 3rd market report we did back in August 2014 (Over 200 since then!). 

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

The Bedford, MA market has fallen off significantly since last year.   The average prices are down and the median prices were down quite a bit more.  The days on market were down a lot however.  Inventory was up a little pretty flat with 8 sales in April of 2015 up to 9 in April 2016. 

Average Listing Prices:

We will first start off by looking at the average listing price.  In Bedford, MA the average listing price in April 2015 was $826,325.  This was down to $770,944 in April 2016.  This gives a modest decrease of 6.70% year over year. 

Looking at the median prices we see that they were lower in both years.  For April of 2015 the median listing price for Bedford, MA was $808,950 and in April 2016 it was $689,000 which now gives an even larger decrease of 14.83%. 

Average Sale Prices:

The next thing we will be looking at is the average sale prices.  The average sale price for in Bedford, MA in April of 2015 was $800,484 and in April 2016 that was down to $758,778.  That gives another modest decrease of 5.21%, and slightly smaller than the average list price. 

We see a different pattern than we did for the median list price.  In this case it was still lower in 2016 but was actually slightly higher in 2015.  For April of 2015 the median sales price for Bedford, MA was $812,500 and in April 2016 it was $665,000 giving another very large decrease of 18.15%. 

Prices are down definitely down for Bedford, MA in April.  The averages and the medians give a different level of change with it only being a much smaller 5-7% drop while the medians are saying it is much more dramatic being more like 15-18%.  Median prices are the more preferred method for evaluating real estate pricing data so that is where we will put most of the weight, and since sales are more important than listing prices we would put prices most likely down most likely at the top of the range right around 18%.

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 Bedford, MA the average days on market in April of 2015 were 138.38 and the average days on market for April 2016 were 79.00 for a large 42.91% decrease.

Bedford, Massachusetts Summary:

The Bedford, Massachusetts real estate market is down a bit since last year.  The average prices were down a bit while the median prices were down a lot more.  The days on market were down a lot though, which is a nice consolation for current home sellers it is not enough to compensate for the price drops when determining that the market is down.

In summary if you are looking to sell a house in Bedford, 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 lot less time to sell compared to last year as well. 

 

Do you need to sell your Bedford, 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: Bedford MA Flag via Wikipedia)

 

Real Estate Trends – Bedford, Massachusetts

Introduction:

This is our latest report on the real estate trends in our target communities in Massachusetts and New Hampshire.  We will show how the market has changed year over year in the municipaltiy that we are spotlighting. The market may improve and you might be able to sell your house for a higher price quickly.  Other times the market has slowed down and prices are on the decline while DOM (days on market) have increased.  When that is the case you may want to sell fast and take less than you originally intended.

Wilson Mill Site - Bedford, MA

Today we are looking at  Bedford, MA in Middlesex County.

Market Trends in Bedford, MA – July 2013 and 2014:

Overall the Bedford, MA real estate market has slowed down year over year.  Average listing prices have come down and so have the average sale prices, and the DOM are also up significantly.  The overall number of properties sold also decreased quite a bit from 24 to 16.

Average Listing Prices:

In July 2013 the average listing price for Bedford was $732,733; in July 2014 that was down all the way to $689,238. This represents a 5.94% decrease year over year.  That is a very significant change, more so on an absolute dollar value (of over $40K!) than the percentage decrease (which is still significant as well).  This would tend to indicate that people are paying less for homes there this year, and the real estate agents know it.  If the local agents know that prices are going down they will attempt to adjust their priceing recommendations to try to compensate for this.

Average Sale Prices:

In July 2013 the average sale price in Bedford was $726,167; in July 2014 it was down to $673,219. This represents a 7.29% decrease year over year.  Again this is quite a significant decrease at that percentage and you can see the price gap is even mroe jarring at more than $50K less than last year.  The bigger dorp here than for the lsited prices also indicates that the actual prices are dropping faster than the real estate agents are compensating for them with the decreased listing prices. This also is supported by the increase in the average days on market discussed next.

Average Days on Market:

In July 2013 the average days on market in Bedford was 33.54; in July 2014 it was up to 49.69. This represents a whopping 48.2% increase year over year.  This is obviously a huge increase!  This would indicate that listings are overpriced and sale prices are going down faster than real estate agents are compensating for the changes in the market.   It should be pointed out that with such small data sets one outlier can really skew the data.  We saw this in our previous report on Abington, MA.  However in this case the highest single days on market were on a place in 2013 and that was more than double the next highest, and actually skewed that set, where taking that out the other houses had an average that was much less at 24.61.  The 2014 set had 1 that was a little shorter than the 2nd longest in 2013.  This data point was only about 25% higher than the next highest so no single house really skewed the 2014 data.  So seeing that the 2013 data is actually somewhat misleadingly high it makes this effect seem even more dramatic than it already was.

Bedford, Mass Summary:

With less sales, higher days on market, lower listing prices and even lower sale prices it is very clear that the Bedford, Massachusetts market has slowed considerably since last year.  In addition to these raw numbers it is also worth noting that in July 2013 the sale price to listing price ratio was 99.1%, which means you pretty much were getting almost full price offers when you were selling.  In 2014 that ratio dropped to 97.7% which while still quite high does show that sellers are also taking bigger discounts off of their listing prices to get things sold.  It is also worth noting that the listing prices are the listing at the time of sale, not the original listing price.  So with the higher days on market it is more likely that these homes also had more price drops which would make this ratio using original listed prices even more dramatic. In summary if you are looking to sell your Bedford, MA home now you should expect to get less than you might have expected and should be willing to take a bigger discount off your listed price or be prepared for it so sit for several months before selling.

 

Do you need to sell your Bedford, 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: “Wilson-Mill-Sign Bedford MA“, by Paddling bear via Wikipedia)