High End Inventory Rising in Newton

There are 65 single family homes in Newton priced above 1 million dollars, equivalent to a whopping 45% of the total 144 homes for sale. 36 homes are priced between 1 million and 1.5 million, 13 priced between 1.5 and 2 million, 10 priced between 2 and 3 million and 6 are above 3 million. In the past 4 weeks only 8 homes have gone under agreement, that equals about 12.5% of the inventory. The highest priced home that has gone under agreement in that time frame is 1.649 million. Some of the listed homes have had offers and a few higher than where they are listed now. Since a house is only worth what someone is willing to pay for it, sellers should try to work with every offer that comes to the table. If inventory continues to rise, homes are worth more today than they will be in 6 months. Zillow just released a newsletter stating that home prices have declined 2.35% in Newton during the 3rd quarter of ’08 compared to ’07. Bear in mind that the closings had to take place before September 30th. The impact the financial debacle had on the real estate market will not be known before January ’09. What is clear; the number of homes going under agreement is down as much as 55%. I would advise existing and potential sellers to evaluate their reason and motivation for a home sale. If you are not ready, willing and able to pass papers for any any reason, do not list your home for sale. Resistant sellers can unwittingly prevent the market from falling to its natural level, therefore, prolonging a declining market or push the market to lower levels because inventory sits unsold. Buyers are looking for value more than ever!

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