Single-family Market Update
Year-ago comparisons of single-family home sales in the Greater Boston area suggest that the market is close to bottoming out and even indicate that in certain cities and towns an upward trend can be identified. Let us look at the numbers. The time period in this analysis compares sales data in the period July 1, 2006 through June 30, 2007 with those of July 1, 2007 through June 30, 2008. The data is derived from the MLS data base - representing true, arms-length transactions.
In Greater Boston, including all the cities and towns affiliated with the Greater Boston Real estate Board (GBREB), the number of sales is down by 12% and the number of listings available for sale (inventory or supply) is lower by 18%. Median price is almost flat - down 1%. The proportion of listings that were reduced in price prior to selling is steady - 53% in 2006-2007 versus 52% in 2007-2008.
In Brookline, the number of sales is down by 8% while inventory - listings available for sale - is down by 32%. median price us up by 27%. The proportion of listings with price reductions is substantially lower - 34% versus 40% the previous year.
In Newton, the number of sales is down by 8% - as in Brookline - and inventory is down by 24%. Median price is up by 2%. Fewer listings had price reductions: 38% were price reduced in 2007-2008 versus 50% in 2006-2007.
In Belmont, just west of Cambridge, the number of sales is flat, median price is down 5%, and inventory is down 14%. There are also fewer price adjustments: 43% of the listings were reduced in price during 2007-2008 versus 51% in the previous year.
Brookline, Newton, Cambridge, Belmont are highly sought-after locations in Greater Boston. They enjoy good public transportation,easy access to urban amenties, and a reputation for good schools. Data indicates that the real estate market is stronger in areas offering these amenities. And that homes priced in accordance with market conditions are selling well - with list-to-sale price ratios of 95 to 97%. Lower inventory and fewer price adjustments suggest that supply-demand laws are coming into play and that with reduced supply, demand is beginning to drive-up prices in certain locations.
Now is the Time to Buy - before the supply-demand equation leads to a renewed up-cycle and while favorable interest rates are still available.
07/01/2006 through 06/30/2008
|
|
Number Sold
|
Median Price
|
Avg. DOM
|
Avg. LP:SP
|
No. New Listings
|
No. Price Changes
|
% Price Changed
|
No. Pending
|
|
GBREB
|
10,252
|
$476,000
|
124
|
96%
|
18,796
|
10,014
|
53%
|
11,476
|
|
Brookline
|
171
|
$980,000
|
138
|
95%
|
262
|
105
|
40%
|
200
|
|
Newton
|
618
|
$750,000
|
118
|
96%
|
947
|
432
|
46%
|
719
|
|
Cambridge
|
148
|
$807,600
|
109
|
96%
|
233
|
116
|
50%
|
170
|
|
Belmont
|
144
|
$707,500
|
108
|
95%
|
220
|
112
|
51%
|
156
|
|
|
Number Sold
|
Median Price
|
Avg. DOM
|
Avg. LP:SP
|
No. New Listings
|
No. Price Changes
|
% Price Changed
|
No. Pending
|
|
GBREB
|
9,041
|
$471,000
|
114
|
96%
|
15,403
|
7,966
|
52%
|
9,949
|
|
Brookline
|
158
|
$1,240,000
|
113
|
95%
|
207
|
71
|
34%
|
152
|
|
Newton
|
570
|
$764,000
|
83
|
97%
|
777
|
328
|
42%
|
585
|
|
Cambridge
|
179
|
$715,000
|
85
|
97%
|
206
|
79
|
38%
|
131
|
|
Belmont
|
144
|
$673,500
|
96
|
97%
|
189
|
82
|
43%
|
152
|
|
|
Number Sold
|
Median Price
|
Avg. DOM
|
Avg. LP:SP
|
No. New Listings
|
No. Price Changes
|
No. Pending
|
|
GBREB
|
(12%)
|
(1)%
|
(8%)
|
Flat
|
(18%)
|
(20%)
|
(13%)
|
|
Brookline
|
(8%)
|
27%
|
(18%)
|
Flat
|
(21%)
|
(32%)
|
(24%)
|
|
Newton
|
(8%)
|
2%
|
(30%)
|
Up 1%
|
(18%)
|
(24%)
|
(19%)
|
|
Cambridge
|
21%
|
(11%)
|
(22%)
|
Up 1%
|
(12%)
|
(32%)
|
(8%)
|
|
Belmont
|
Flat
|
(5%)
|
(11%)
|
Up 1%
|
(14%)
|
(27%)
|
(3%)
|
