We are wrapping up another strong year in real estate. As the fall selling season comes to a close, people are hearing rumors of “price adjustments”, “market slowdowns,” and “potentially higher interest rates.” However, statistics don’t paint the same dark picture! What most people don’t realize is that things always seem to slow down in the fall! Even in the past few years, when prices seem to have been going up at record pace during the spring, there are always signs of a slowdown in the fall.
Even during the real estate slowdown during the so-called Great Recession, prices in Newton lost very little value. The closer to the MBTA’s Green line that a property was located, the less that price seemed to soften. The largest corrections occurred in the extreme northern and southern parts of the city. But, Newton and its surrounding area remain a pretty good hedge against any softening of the real estate market. There is still huge demand, especially among young home buyers with young children, as such young families are attracted by the schools and will often go the extra mile” just to be able to buy here. Many folks will sacrifice some of their desired needs in a home just to be able to land in Newton. The city’s location, at the crossroads of Rt 128/I-95 and the Mass. Pike, along with other routes into Boston, such as Commonwealth Avenue, Beacon Street, and Rt 9, and also with the MBTA’s desirable D-line nearly bisecting the city, along with the South Station line of the commuter rail running along the route of the turnpike will always make Newton a desired landing place for home buyers, especially for anyone who needs to commute almost anywhere, regardless of economic times. Newton is 20 minutes to Logan Airport in non-rush hour times, and commuters can go to Metro West, Metro North, and even the south shore more even accessibly than from almost any other location in greater Boston.
In spite of talk of gloom and doom, our market statistics for single-family houses in Newton were very similar in 2018 to 2017. In the two years to date, there is only a difference of one single family home that has been sold in the year, with 547 single-family homes sold this year to date compared with 548 in 2017 to the same date, December 11. Current inventory is actually four single-family housing units lower this year than it was at this time last year.
Condo sales, however, were lower by about 75 units year-to-date. The average price has actually decreased by $11,000, or by 1.36%. Much of that decrease, however, can be traced to a 36-unit complex that closed during the fall of 2017, adding both closed sales and a slightly higher average price to the marketplace statistics for 2017 than for 2018, when no new large projects came on the market. The city has also made it increasingly difficult for developers to develop 2-unit new construction townhouses, resulting in fewer such projects being permitted, built and sold.
Next month, I will furnish a full market review of the entire area, giving a full comparison of 2017 versus 2018 for all towns in this area. In addition, if you have interest in any other locations besides Newton and its immediate surrounds, just let me know, and I will be glad to furnish a custom made area market review for any location in the state.
My best to everyone for a Happy Holiday season, and for a healthy, happy and prosperous New Year!
Broker, Keller-Williams Realty
Principal, Cabot Homes, LLC