Wishing all of you the happiest new year.
The numbers are in, and many of you may be surprised how well Newton actually performed this year. We have been bombarded with news of financial meltdown, the housing crisis, the list goes on….
- Average Sales Price
- Days on Market
- Total properties Sold
- Lowest Price House Sold
- Highest Price House Sold
- Total Market Volume
What conclusion can we draw from the numbers:
- Average Sales price down 3.5%
- Days on market down 25%
- Total Properties old down around 20%
- Total Market Volume in dollars down 22%
The unusual finding is; days on market dropped considerably while the amount of homes sold also dropped significantly. Sellers who priced their homes correctly saw fewer days on the market. Since the overall volume is down 20%, I would expect to see prices drop accordingly. I am not suggesting a free fall but a correction of 5-10% is not out of the question. Many sellers have waited out this past year hoping for better prices, which accounts for the decreased volume, however, if we see a definite rise in inventory, inevitably price declines will result. Since the market value and the total properties sold are in line with each other, that suggests that each segment (low, middle and high end) performed in sync with each other. I expect to see interest rates in the mid 4% range and optimistically that will propel buyers to the table.