Real Estate Trends – Lynnfield, Massachusetts

Introduction:

Welcome back for our latest market trend report.  As usual we will be examining a town in Massachusetts or New Hampshire and its real estate markets.  If you have not read one of these reports before we examine the town’s year over year change in the real estate market and talk about these observations and what they may mean for the market now and going forward. 

Today we are highlighting Lynnfield, MA in Essex County

 Lynnfield Banner - Lynnfield MA Real Estate

Market Trends in Lynnfield, MA – December 2013 and 2014:

The Lynnfield, MA market has definitely declined since last December.  Both the listing and sales prices are down quite a bit, while the days on market have increased significantly as well.  Inventory was up a lot with 7 sales in December of 2013 and 15 in December 2014. 

Average Listing Prices:

The first thing we always look at is the average listing price.  For Lynnfield, MA the average list price was $604,357 for December 2013.  This decreased down to $546,873 in December 2014.  That is a fairly large decrease of 9.51%. 

Average Sale Prices:

The next thing we look at is the average sale prices.  For December of 2013 the average sale price for Lynnfield, MA was $608,771, but by December 2014 that was down to $529.143.  That would be a much larger decrease of 13.08%.  When the sales prices are falling faster than the listing prices that will often indicate that the market is changing and sellers and their agents have not caught up to it yet. 

An important point to note is in December 2013 the sale price is HIGHER than the list price.  We recently saw this phenomenon for the first time in one of our reports for Arlington, MA earlier this month.  This would seem to show the market was extremely competitive in December of 2013.  5 of the 7 sales were for above the asking price with 1 other selling for exactly the list price.  In 2014 there were still some above list sales but many less and more going for discounted prices.  On average in 2014 places were selling at 96.75% of the list, which is much more typical but on the low side of normal.

Average Days on Market:

The finally we look at the days on market, which measures how long it is takes for a house to sell in the market.  For Lynnfield, MA the average days on market in December of 2013 was 59.71 and the average days on market for December 2014 was 100.87, for a substantial 68.9% increase.  Besides the big percentage change being just under 60 days on market is not great but isn’t usually considered that concerning, however going over 100 is generally regarded and being very high so this is an even stronger indicator of problems than the fairly high percentage indicates.

Lynnfield, Mass Summary:

The Lynnfield, Massachusetts real estate market has dropped off significantly since last year.  The declines in both listed and sale prices make this clear as well as the increase in the days on market.  The observation that last year houses were selling for above listed price constantly but now are not is important to see.  This indicates that things have slowed down even more than the raw numbers suggest and that 2014 was probably the top of the market and the best change to fetch a premium price for your property.

In summary if you are looking to sell a house in Lynnfield, MA now you should expect to get quite a bit less for it than you would have last year.  You also should expect to need to actually take a discount off of your initial price to avoid sitting on it for a longer time unlike last year.  Last year’s strategy of under pricing the listing to get multiple above list offers is not a good one now.

 

Do you need to sell your Lynnfield, 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: Lynnfield New Banner via Town of Lynnfield’s website)