President Obama recently gave his 100 Day Progress report...
So let's take a look at how the local Real Estate market has been doing for the first five months of 2009...
As I described in my earlier reports, for the first two months of 2009 compared to last year, the market has varied greatly by town.
Needham continues to stay on solid ground, but has leveled off compared to the first two months.
Wellesley’s home sales in dollar value for the first five months of 2009 plummeted 60.7%, and the median home price in Wellesley fell 15.4%, compared to the same period in 2008 .
The Natick market for the same five month period, had a moderate decline of 19.6% in dollar volume, but is the only town in the trio to show a gain of 7.8% in median price.
WELLESLEY has tanked, NEEDHAM is stable, and NATICK has moderate declines.
Percentage Change for the first five months of 2009 vs 2008.
NEEDHAM WELLESLEY NATICK
SALES Units + 5.1% - 52.9% - 21.3%
VOLUME +1.1% - 51.9% - 19.6%
Median price - 5.4% - 15.4% + 7.8%
What does this mean?
Wellesley’s average list price for single family homes is currently $1,692,538. This is in stark contrast and out of balance with the average selling price of $1,162,520 for the first five months of 2009.
A further obstacle to Wellesley’s recovery is a current inventory of 207 homes for sale. Ninety two of these homes are priced at $1.5MM or more.
Based on the sales of just seven homes for more than $1.5MM during the first five months of this year, it will take about five years to absorb the inventory of homes priced at or above $1.5MM.
Overall, Wellesley’s 207 homes currently on the market will take approximately 20 months to be absorbed based on sales for the past five months annualized.
In contrast Needham has 124 homes currently for sale and Natick has only 102.
Two major factors are at play in the local real estate markets. The basic law of supply and demand; or in the case of Wellesley, oversupply, as well as the credit markets that are heavily biased against jumbo loans, which are needed to fiance the vast majority of homes in Wellesley.
The numbers tell a story. ..
Home prices in Wellesley will face significant downward pressure in the coming months before the market can gain equilibrium.
JOHN PRESCOTT
-BostonKayakGuy
Top Real Estate Agent for more than 14 years, serving the real estate needs of Wellesley, South Natick, Weston, Needham, Wayland, Newton, Framingham and other MetWest communities. www.johnprescott.net
JOHN PRESCOTT
Vice President
Century 21 Commonwealth
508-523-9252
BostonKayakGuy…The MetWest Scene
JOHN PRESCOTT
-BostonKayakGuy
Top Real Estate Agent for more than 14 years, serving the real estate needs of Wellesley, South Natick, Weston, Needham, Wayland, Newton, Framingham and other MetWest communities. www.johnprescott.net
JOHN PRESCOTT
Vice President
Century 21 Commonwealth
508-523-9252
BostonKayakGuy…The MetWest Scene
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