Natick, Needham, and Wellesley real estate trends… President Obama has given his 100 Day progress report.

How is the local Real Estate market doing for the first five months of 2009?

 As I reported for the first two months of this year compared to last year the market varies greatly by town.

Needham continues to hold it’s ground but has leveled off as compared to the first two months.

Wellesley’s home sales in dollar volume for the first five months of 2009 compared to the same period of 2008 plummeted 60.7% and the median home price in Wellesley for this period fell 15.4%.

For this five month period compared to the same period in 2008, Natick 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%            - 51.9%              - 21.3%

$ VOLUME                                         1.1%             - 60.7%             - 19.6%

Median price                        - 5.4%             - 15.4%              7.8%

 What does this mean?  As of 5/31, Wellesley’s average list price for single family homes was $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.

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, and the credit markets that are heavily biased against jumbo loans needed to finance 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?  Your thoughts?

What has not changed: Homes in very good locations that are in mint condition and priced right for the current market conditions continue to SELL.

 Get the latest scoop!  SUBSCRIBE TO
 THE METWEST SCENE:

Today's real estate market can be daunting.  Your real estate agent should have a global perspective when it comes to your real estate needs.  John Prescott specializes in the metrowest communities of the greater Boston area.  Today's consumer has very specific objectives and requires an agent who takes the time to know the inventory, market, and trends of more than just 1 town!  The customer is best served by a realtor who can attract buyers from the greatest pool of prospects.  Consequently your realtor must know the attributes of various communities in order to best direct potential buyers to homes which meet their needs.  Sellers need to attract buyers from their town, from the western suburbs, from the state, and even from across the country.  In fact, many potential buyers are international buyers due to the strength of the euro and other foreign currencies.  The best agent knows how to market to these varying market segments.

For buyers, the best real estate agent is one who can match buyer needs with available inventory in several communities so that the buyer is aware of what their investment will buy in various communities.  Buyers need to know what their dollar will buy in the towns they designate, as well as other towns so that they can make an informed choice.