Real Estate Trends – Chelsea, 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 Chelsea, MA in Suffolk County

 Chelsea MA City Seal - Chelsea Massachusetts Real Estate

This is the 2nd time we have looked at the Condo market in Chelsea, MA, but it has been a while with the first time back in October of 2014

Market Trends in Chelsea, MA – November 2014 and 2015:

The Chelsea, MA condo market has fallen off since last year.   The average prices were both down significantly while the median prices were down a lot as well.  The days on market did decrease though.  Inventory was up a little bit going from 6 sales in November of 2014 to 8 in November 2015. 

Average Listing Prices:

We will first start off by looking at the average listing price.  For condos in Chelsea, MA the average listing price in November 2014 was $283,650.  This was down to $221,688 in November 2015.  This gives a very large decrease of 21.84% year over year. 

Looking at the median prices we see that it was a bit lower than the average in 2015.  For November of 2014 the median listing price for Chelsea, MA condos was $284,000 and in November 2015 it was $209,950 which now gives an even bigger decrease of 26.07%. 

Average Sale Prices:

The next thing we will be looking at is the average sale prices.  The average sale price for a condo in Chelsea, MA in November of 2014 was $264,833 and in November 2015 that was down to $216,825.  That gives another very large 18.13% decrease. 

We see a similar pattern with the median sale prices as we did for the listing prices for both years.  For November of 2014 the median sales price for Chelsea, MA condos was $267,500 and in November 2015 it was $208,000 giving slightly smaller decrease of 22.24%. 

The prices are down a lot for condos in Chelsea, MA in November compared to last year.  Looking at this data the range is fairly tight going from 18-26% and there is no real pattern between the averages and the medians.  Since 3 of the 4 metrics were over 20% including the median sale price which will usually be considered the most important of the 4 we will conclude prices are down at least 20% for Chelsea, MA condos this month. 

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 Chelsea, MA the average days on market in November of 2014 were 82.17 and the average days on market for November 2015 were 51.75 for a pretty good 37.02% decrease. 

Chelsea, Mass Summary:

The Chelsea, Massachusetts condo real estate market is down a bit since last year.  The average prices were down a lot and median prices were down substantially as well.  However the days on market were down some as a small counter argument to a weaker market, but prices definitely greatly outweighs this, especially when the price drops are 20%. 

In summary if you are looking to sell a condo in Chelsea, MA now you should expect to get a lot less for it than you would have gotten last year.  Though you can also expect it to take a bit less time to sell compared to last year as well. 

 

Do you need to sell your Chelsea, 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: Chelsea, MA Seal via Wikipedia)

 

Real Estate Trends – Chelsea, Massachusetts (Condos)

Introduction:

In this report on the local real estate market trends we will be looking at things a little differently.  In all of our past reports we have looked at the single family home market.  For most communities we will see in Massachusetts and New Hampshire that is the most important type of property to examine.  However there are some areas where this is not the case.  Suffolk County Massachusetts has a very high percentage of condominiums to the tune of roughly 77% of all listings and sold properties.  While some towns or cities in other areas might have large condo saturation this area is unique in the systemic nature. Today we are highlighting the condominium market for Chelsea, MA in Suffolk County. MA Real estate - Tobin Bridge between Boston and Chelsea

Market Trends in Chelsea, MA – September 2013 and 2014:

The real estate market in Chelsea has slowed down somewhat since last year according to our data.  Average listing prices are up slightly, however the average sale prices are down and the average days on market are up.  The total number of properties sold didn’t change with 9 sales each period.  By the way to underscore the point made about the condo vs. single family house numbers, about 83% of the listings and sold properties in Chelsea are condos and in particular there were only 1 and 3 single family sales in the same timeframe discussed here.

Average Listing Prices:

The average listing price for a condo in September 2013 for Chelsea, MA was $212,711; in September 2014 that was up slightly to $213,067, for an essentially meaningless 0.17% increase.  This shows that overall the real estate professionals in the city felt the market was fairly stable.  Though given what we will see in the next 2 sections this may not have been a well founded assumption.

Average Sale Prices:

The average sale price for a condominium in Chelsea in September 2013 was $207,100; in September 2014 that was down to $205,389. This represents a fairly tiny 0.83% decrease.  This is not much of a change but the fact that listing prices are up while sales prices are down would indicate that there is possibly some disconnect in what the perceived market realities are and what the facts present.

Average Days on Market:

This is the metric that is the most telling in the change in the Chelsea, MA real estate market year on year.  The days on market in September of 2013 were 39.0 while in September 2014 that was all the way up to 65.22.  This is a large increase of 67.2%. So while list prices and sale prices were fairly stagnant during these time frames this indicates that even though sellers are still getting roughly the same prices they are sitting on their properties far longer than a year ago when things were moving fast.

Chelsea, Mass Summary:

Despite fairly stable list and sales pricing year over year the large increase in days on market show that the Chelsea, MA real estate market has slowed since last year.  In addition to that it is worth pointing out that while the changes were small the fact that list prices increased while sale prices decreased also leads to the discrepancy between the 2 metrics to decrease.  The closer the eventual sale price is to the listed price the stronger the market is as buyers are willing to pay full retail price for homes they want.  In this case the sale price to list price ratio decreased from 97.4% to 96.4%.  This is not an eye catching number, but is indicative of the small changes moving the market into a stagnant to declining market. In summary if you are looking to sell your Chelsea, MA condominium now you might expect to get about what you might have expected last year but should be willing to consider taking a bigger discount off your listed price to avoid sitting on it for too long.

 

Do you need to sell your Chelsea, 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: Tobin Bridge connecting Charlestown and Chelsea, public domain)