Real Estate Trends – Lexington, Massachusetts

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 Lexington, MA in Middlesex County

 Lexington MA Flag - Lexington Massachusetts Real Estate

Market Trends in Lexington, MA – September 2014 and 2015:

The Lexington, MA market has fallen off a lot since last year.   Both the average listing and sale prices were down significantly.  The median prices were also down significant amounts.  The days on market were actually down though, and maybe by more than they first appear.  Inventory was pretty stable going from 33 sales in September of 2014 up to 36 in September 2015. 

Average Listing Prices:

To start off first we are going to look at the average listing price.  For Lexington, MA the average listing price in September 2014 was $1,247,624.  This was down to $994,597 in September 2015.  This gives a huge decrease of 20.28% year over year. 

With such a big difference we make sure to look at the median prices as well.  Taking a look at the median prices reveals that they are quite a bit different than the average especially in 2015.  For September of 2014 the median listing price for Lexington, MA was $1,328,000 and in September 2015 it was $762,000 which now gives a significantly bigger 42.62% decline!

Average Sale Prices:

Next up we will be looking at is the average sale prices.  The average sale price for in Lexington, MA in September of 2014 was $1,236,200 and in September 2015 that was down to $1,005,323.  That gives another very large 18.68% decrease. 

We see the same pattern with the median sale prices as we did for the listing prices.  For September of 2014 the median sales price for Lexington, MA was $1,342,000 and in September 2015 it was $778,500 giving another ridiculously large 41.99% decrease!

It does not matter which way we look at it, prices are down a lot for Lexington, MA in September 2015.  The medians are down a lot more than the averages but all the indicators are showing things are down 20% or more.  Medians are generally favored in this type of analysis and those are indicating things are down over 40%!  The averages still look like things are down about 20% so not exactly a rosey outlook by that measure either. 

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 house to sell in the current market.  For Lexington, MA the average days on market in September of 2014 were 63.97 and the average days on market for September 2015 were 47.75, for a decent 25.36% decrease. 

However, as we have seen many times before in our previous posts for AbingtonBedfordSeekonk, BelmontTopsfieldCanton,  Dracut (Condos)HamiltonWakefield, Amesbury (Condos), Dracut #2, Taunton, Reading, Stoughton, Wrentham, Stoneham, Dedham, Nashua, NH, Tewksbury, Brockton (Multifamily), Lowell (Multifamily), Acton, Foxboro, Pembroke, Chelmsford, BeverlyFramingham (Condos), Plymouth County (Condos), Marlborough, Billerica, Waltham, Dracut (Condos) #2, Derry, NH, Framingham, Burlington, Duxbury, Acton #2 , Taunton (Condos), Tyngsborough, Milton, Salem, NH, Boston’s Hyde Park, Boston’s West Roxbury , Somerville, Canton #3, Pelham, NH, Westford, Plymouth (Condos), Boston’s Jamaica Plain , Halifax,Braintree (Condos), Newton (Multifamily), Plainville ,Boxford, Wayland , West Bridgewater, East Bridgewater, Marlborough (Condos), Natick (Condos), Gloucester, (Condos), Melrose (Condos), Norton (Condos), Newburyport, Atkinson, NH and Fairhaven outliers in the data can really skew these numbers.  This again is the case for Lexington, MA in September.  In this instance there was a very high days on market place in the 2015 data.

In 2015 there was a property with 408 days on market; this was almost as much as the next 3 properties combined and was almost 24% of the total days on market for all 36 houses.  When removed the new calculation for the remaining 35 properties gives an average days on market of 37.46. 

Using the adjusted numbers we see a very large 41.44% decrease.  This does not change the general thought of the days on market being down somewhat but now they appear to be down a very large amount rather than a moderate amount.

Lexington, Mass Summary:

The Lexington, Massachusetts real estate market is down since last year.  The average prices and the median prices were both down by very large amounts.  While the days on market were down a lot as well this is of little consequence when buyers will be getting 20-40% less than last year. 

In summary if you are looking to sell a house in Lexington, MA now you should expect to get a lot less for it than you would have gotten last year.  However, you should also expect it to take a lot less time to sell compared to last year too. 

 

Do you need to sell your Lexington, Massachusetts house fast?  If you would like to sell your home fast and hassle free schedule a consultation with us today.

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(Image credit: Flag of Lexington via Wikipedia)