Along with last week's (surprising) news that the United States has been in a recession since....DECEMBER 2007, comes even more shocking news that it is a buyer's market in Metrowest Boston.

For those of you who recently were educated on market absorption rates (click here to read blog post), the following table shows the current market absorption for towns in our service area just outside of Boston. 

 

metrowest boston market absorption

Ah, but do these statistics mean anything?  A closer look will tell.  What are the price ranges for single family homes in these towns?  Could it be that some single family homes are selling better than others?

For those of you unfamiliar with the Metrowest area, it is composed of more towns than I have listed above, but the majority share the following characteristics:

  • highly rated schools
  • excellent highway access
  • close to commuter rail lines
  • town centers with shopping, restaurants and services
  • convenient access to Boston and Cambridge, the High-Tech corridor area of 128 and to Providence
  • Families with some of the highest income and education levels in the state

But there is also one word missing - diversity in the housing market.  Take Wellesley, for example.  We have luxury mansions built on huge plots of land, "McMansions" built on smaller lots and 50's Ranch style homes.

So, let's look at Wellesley's market absorption from a different angle

 

Wellesley, MA market absorption

And the lesson to be learned?  Wellesley is not the buyer's market that it once seemed to be.  With an average YTD sales price of $1,357,000 it is easy to see the price cut - anything under that price is a bargain for Wellesley, anything above and you may as well start looking at comparable homes in Weston, South Natick or Wayland. 

The above shows Wellesley's "sweet spot" for the real estate buyer.  Do you do this analysis for your buyer or seller clients?  Maybe you should. 

Welcome to Real Estate 2.0.

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx 

BORED WITH YOUR CURRENT JOB? 

Do you feel like your office is holding you back from your true potential?  Is your broker competing with you for new business?  Do you sometimes wish that you could work with an energetic and fun team of seasoned and new agents that enjoy the benefits of being affiliated with an office that provides superior technology; a lucrative compensation package, including profit sharing; company generated buyer and relocation leads; and office management that does not compete with agents for new business?

Come see what WEICHERT, REALTORS®-Synergy has to offer. 

Interested? Contact us now or call us at 617-751-4001

  Weichert Realtors Synergy - Your trusted neighborhood specialistWeichert REO Network

 

http://www.synergy-metrowest.com

 
This post has been included in Massachusetts Real Estate News
Post is included in group: ABR/REBAC
Post is included in group: Boston Area Real Estate
Post is included in group: MA REALTORS
Post is included in group: Realtors®
Post is included in group: WREA offices of MA, NH, ME and VT

7 Comments on Amazing revelation - Is it really is a buyer's market???

DEC
08
2008
250,339 Points 26 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

I think the absorption stats are very informative and I keep those for my area as well.  You have to be careful, although the data tells one story the perception of the public dictates another.  Good luck and good information!
7:26am • #1
487,931 Points 4 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

I agree with the first comment that data is hard fact, but the emotion and perception of a buyers market is another thing all together. Something drastic has to happen in the media for the average buyer to change their perception that this is no longer a buyers market.
7:29am • #2
220,793 Points 4 Featured Posts Localism Sponsor

I also think perception is key and the 4.5% interest rate (if it happens) will change the perception of some.  Great stats.

 
7:42am • #3
231,708 Points 13 Featured Posts Outside Blog

It is a buyers market in my area!  However, things are selling again and the "buyers market" will not last forever!  Get out there an BUY NOW and get off of that fence...
8:16am • #4
1,065,871 Points 68 Featured Posts Outside Blog Called Shot Master

What some buyers need to realize..including and especially the one we countered last night...there are homes that are priced to sit...and those priced to sell...beating up sellers who are staying with the market pricing is not how to get the extra lawn furniture, garden tools...lawn mower and snow blower and keep the transaction moving...OR to get a good house at a reasonable price...happiest of holidays !
8:28am • #5
DEC
10
2008

Martin so Im seeing in your stats that anywhere over 6 months absorption rate is a Buyers market correct? Did you just randomly use the 6 month mark to determine a buyers or sellers market?
12:33pm • #6
DEC
11
2008
239,351 Points 16 Featured Posts Attended Rain Camp Called Shot Master

Stephen -

Industry convention and economic theory states that a market aborption rate of 5-6 months represents a "balanced" market.  Anything below that is a sellers market (more demand, less supply) and anything above 6 months is deemed to be a buyers market (more supply, less demand). 

Thanks for asking !
6:20pm • #7


What does the graphic say?
Leave a response…

(optional)
Spam Prevention: