Newton, MA multi-family residence market report October 2011 – Absorption Rate

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Real Estate Agent with (617) 388-3151 | Century 21 Commonwealth
Newton, MA multi-family residence market report
October 2011 – Absorption Rate


On October 31st there were 34 multi-family residences listed for sale in Newton, MA according to the multiple listing service data (MLSPIN).

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, and it constantly changes as new homes are listed and existing inventory is sold.

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
 
Let's look at the chart.

Newton, MA multi-family residence market report October 2011 – Absorption Rate

There has been very little change in the market during October. Six units entered the market. There have been three sales, and two units are under agreement - pending sale, so the market is essentially the same as it was in September.

From the chart we can see that the majority of multi-family residences in Newton MA are priced from the $400,000s through the $700,000s. The absorption rate shows that the market is slightly towards a buyer's market for the mid-range properties.

Some of these mid-range multi-family residences are greatly overpriced, and will not sell, and will likely get few, if any, offers. A few of them are in the right price range, but not for the condition they are in. These will sell if the sellers are willing to adjust their price to meet offers.

In summary, although multi-family residences are about a quarter of the total housing in Newton MA, they are less than ten percent of the current real estate market. They are mostly owned by investors, and do not reach the market as often as single-family residences or condos, so buy them when they are available.

 

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