What’s Going on NOW in the Real Estate Market?

Belmont, Brookline/Newton, Cambridge, Charlestown, Concord, Framingham, Hingham, Lexington, Sharon, Waban (Newton), Wellesley, Weston, and Winchester. Look at these clearly skewed statistics toward higher-end locales.

In these towns, the data (courtesy of Saul Cohen from Hammond Reseisdential ) from 2006-2011 looks like this:

 

[  Year  ]

[  Units  ]

[  Volume  ]

[  Avg. Sale Price  ]

2006

6863

$4,873,732,360

$710,146

2007

7503

$5,443,119,160

$725,459

2008

6228

$4,467,690,813

$717,355

2009

5914

$4,015,973,135

$679,062

2010

6268

$4,632,273,877

$739,035

2011

6212

$4,727,371,301

$761,006

 

 

 

There has been modest recovery units and volume in these last two years from the low point set in 2009, but we are not back to the heights set in 2007.

“Volume” is recovering and so is “units.” But, of interest, there has been a major shift in the average selling price. Since the low which was hit in 2009 of $679,062 average selling price, in two years it has soared to $761,006 average selling price. More inventory sold in 2011 than did in 2009 and included more of the expensive units.

 

Most of the above towns are fundamentally sound, with good/great schools, a solid tax base, and within an easy commute of Boston, Cambridge, and 128 (“America’s Technology Highway”). It is true that real estate markets are so hyperlocal that they can result in a tale of two (or three, or four …) cities. But not all of the above towns represent a walled-off fortress. With mortgage rates at or below 4 percent, and three-bedroom homes in decent locations in the $600,000s or even $500,000s, young professionals are finding such towns within their grasp. The more eminent problem for them right now is a lack of inventory. It’s why we are seeing bidding wars in Newton, Lexington, and Concord.

Thanks to Bill Janovitz’ article in a recent Boston magazine article, “Making Sense Out of Real Estate Headlines” for these comments.

 For more real estate information, and to do a search for properties, click on www.propertiesbybarbara.com

 

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