Newton Real Estate Review - January to June 2016

Following the busy spring season, a significant focus of the real estate news has been on record-setting home prices across Massachusetts, particularly among the high-demand areas within commuting distance to Boston.

Despite the headlines, as the adage goes, “all real estate is local.” Home prices across the state, or even across the same town, are not as relevant as those across the street.

In Newton, home to more than 85,000 residents, the market can be best described as a victim of its own success. Meaning, for years, the real estate market has been white hot, and home values have seen a steady, if not parabolic, rise. As residents of Newton have watched neighbors sell homes of increasing worth, today’s sellers may be overly aggressive in listing their homes. But at some point, home buyers refuse to pay much more than what they perceive the value to be. This spring we saw an adjustment in that equilibrium.

An analysis of the inventory composition shows that some segments have been performing better than others.

Overall, Newton single-family home sales continue to stay in line with inventory. Overall sales were down 4.7%, but inventories were also down 7%. Among homes priced less than $2M, sales have been outperforming inventory levels. Sales of homes priced under $1M were relatively flat, despite inventory being down by 27%. For homes priced between $1M - $2M, sales increased 4% while inventory dropped by 17%. These numbers indicate that these two segments of the market are performing well in Newton. There is still considerable demand and great opportunity for sellers.

In addition to specific price segments, certain geographic regions, represented by zip code, have performed favorably in 2016 to date:

• West Newton Hill (02465) increased sales totals by 7%, from 42 to 45
• Chestnut Hill (02467) increased sales totals by 5%, from 19 to 20
• Waban (02468) increased sales totals by nearly 30%, from 31 to 40; among homes less than $2M, sales totals increased nearly 50%, from 23 to 34

However, homes priced above $2M experienced a slowdown. Sales of homes between $2M - $3M decreased 31%, and sales of homes above $3M decreased 40%, and there was a slight increase in inventories. In these segments, we believe buyers are not willing to overpay.

At MB Associates, we remain bullish on the Newton housing market. There continues to be high demand across all price points as buyers seek a great place to raise their family and a convenient location to Boston.

*All data from MLS Property Information Network, Inc.

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MB Associates is a leading residential real estate team specializing in Newton, Brookline, and surrounding communities. With more than 60 years of combined experience and $450 million in sales, the team’s deep market knowledge helps guide buyers and sellers through the sales process. As trusted advisors, MB Associates ensures that significant real estate decisions are supported by substantial expertise.