Newton, MA condo market report August 2011 – Absorption Rate

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Real Estate Agent with (617) 388-3151 | Century 21 Commonwealth
Newton, MA condo market report August 2011 – Absorption Rate

There are currently 125 condos listed for sale in Newton, MA according to the multiple listing service data (MLSPIN). To review, the absorption rate is a calculation of how many months of housing inventory are on the market based on historical rates of sale per month and the current housing inventory. What this tells us is how long it would take to sell all of the houses currently on the market if no new houses came on the market. This is useful as an indicator of the state of the market.

A Seller’s market is considered to be 1 to 4 months supply of housing
A Neutral market is considered to be 5 to 6 months supply of housing
A Buyer’s market is considered to be 7 or more months supply of housing

Newton MA condo market report for August 2011
From the chart we can see that the type of market we are in depends a lot on the price range of the condo. The chart breaks down sales and inventory by $100,000 price range. Newton is in a balanced market for the lower priced, entry level condos priced under $300,000.

The middle range of condo prices from $400,000 to $600,000 is a mixed market. The $400,000 condos can be viewed as the high end of the entry level condos, or the bottom of the middle range. For condos in the $400,000s it is a buyer’s market. There are not that many buyers for the higher end of the entry level market, and buyers who want more are looking at much higher priced condos.

There is less than 4 months of inventory for houses in the $600,000s, which makes it a seller’s market. But move up in price to the $700,000s and there is over a ten month supply, making it a buyer’s market.

For higher priced condos from $700,000 to to $1,000,000 it is a buyer’s market. The chart shows a 36 month supply of condos in the $900,000s, but this is misleading. Most condos of that quality are over $1,000,000, so the few condos in the $900,000s should really be viewed and classed with the $1,000,000 condos.
In summary, a well-maintained, properly priced condo in Newton will sell, and there is enough inventory for buyer’s to have many choices. The real estate market for Newton MA condos is good.

Melville

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