Be fearful when others are greedy. Be greedy when others are fearful. - Warren Buffett
Opportunity abounds throughout the Merrimack Valley. Inventory levels in most communities remain above 6 months (a 5-6 month supply is considered normal and balanced) which gives Buyers plenty to choose from. The number of transactions in most cities and towns has remained stable over the past few months, and inventory levels in most areas are continuing to decline. This remains an excellent market for first time buyers, seasoned investors looking to add to their portfolios, new investors looking to build their portfolios, and those with equity in their current home who are looking to upsize or downsize.
Are we nearing the Bottom?
As inventory levels throughout Essex County and Middlesex County continue to decline and become closer to a balanced supply, some towns in the Merrimack Valley appear to be nearing the bottom.
Single Family Market Data
Andover: 124 Active listings ranging from $239,900 to $3,075,000 with an average list price of $707,914. Average Days on Market (DOM) =168. There are another 24 properties Under Agreement and these properties had an average DOM of 100.8. The average and median sales prices have remained fairly flat over the past two months, and market activity remains stable.
Billerica: 156 Active listings ranging from $144,900 to $899,900 with an average list price of $374,597. Average DOM=187. There are another 25 properties Under Agreement, and these properties had an average DOM of 89. The average and median sales prices saw a slight drop in October when compared to September's numbers. However, the average and median sales prices have remained relatively stable since March. This could be a sign the bottom of the Billerica Single Family Market has been reached.
Chelmsford: 124 Active listings ranging from $125,000 to $950,000 with and average list price of $427,906. Average DOM=147.6. There are another 15 properties Under Agreement, and these properties had an average DOM of 85.8. The average and median sales prices dropped slightly for the third straight month. Values in the lower half of the market have remained fairly stable while values in the upper half of the Chelmsford market remain soft. (the October numbers listed in the charts below do not include a sale of a $1,475,000 property which skews the numbers)
Dracut: 119 Active listings ranging from $160,000 to $869,000 with an average list price of $354,809. Average DOM=174.5. There are another 36 properties Under Agreement, and these properties had an average DOM of 99.3. For the second straight month, the average and median sales prices have increased slightly. This could be a sign the bottom of the Dracut single family market has been reached.
Lawrence: 95 Active listings ranging from $39,900 to $370,000 with an average list price of $178,775. Average DOM=156.9. There are another 40 properties Under Agreement, and these properties had an average DOM of 129. While Foreclosures and Short Sales continue to dominate the landscape in Lawrence, the current number of active listings (95) represents less than a 6 month supply which is a balanced supply. The average and median sales prices have remained relatively stable since April which indicates the Lawrence Single Family Market most likely has reached its bottom.
Lowell: 241 Active listings ranging from $65,000 to $1,100,000 with an average list price of $241,551. Average DOM=156.5. There are another 62 properties Under Agreement and these properties had an average DOM of 166. Similar to Lawrence, the Lowell Single Family Market has numerous Foreclosures and potential Short Sale Listings. While the average sales price increased for the third straight month, there continues to be an over supply of homes for sale (over a 7 month supply). The median sales price remained relatively stable in October when compared to September. Again, this market may be near its bottom but the over supply of inventory is cause for concern and could lead to further decreases in sales prices as long as inventory levels remain above a 6 month supply.
Methuen: 205 Active listings ranging from $76,950 to $899,995 with and average list price of $339,102. Average DOM=148. There are another 48 properties Under Agreement and these properties had an average DOM of 137. The average and median sales prices have remained relatively stable over the course of 2008, however, both have dropped slightly over the past two months. This is most likely due to the over supply of homes for sale in this market. Similar to Lowell, the over supply is cause for concern, and expect the downward trend to continue as long as inventory levels remain above a 6 month supply.
Tewksbury: 95 Active listings ranging from $160,000 to $899,000 with an average list price of $390,112. Average DOM=169.3. There are another 13 properties Under Agreement and these properties had an average DOM of 78. This is a prime example of how pricing a home properly will result in a quicker sale. Improper pricing will cause a home to stay on the market long and become stagnant. While the average and median sales prices have been stable over the past three months, both are down when compared to this past summer. Inventory levels remain high, and are a cause for concern.
Tyngsborough: 61 Active listings ranging from $149,900 to $950,000 with an average list price of $418,715. Average DOM=192. There are another 13 properties Under Agreement and these properties had an average DOM of 100. The Tyngsborough single family market continues to lag behind its neighboring communities. The 61 active listings represent a 12 month inventory which is a major cause for concern. While there are a number of well maintained properties available, expect the sales prices to continue to gradually decline due to the large over supply of inventory. Buyers continue to have the upper hand in negotiations, and some owners have started to turn to the rental arena. There are a number of single family properties available for rent in Tyngsborough. The typical monthly rent ranges from $1800 to $2500.
Westford: 113 Active listings ranging from $150,000 to $975,000 with an average list price of $500,138. Average DOM=165.5. There are another 10 properties Under Agreement and these properties had an average DOM of 147.5. While the average and median sales prices saw a slight increase in October, there continues to be a 7-8 month supply of homes for sales. The average and median sales prices are down when compared to the summer months. This is due in large part to the over supply of homes for sale.
Be
Comments(1)