Tag Archives: Melrose

Local Real Estate Value Trends North of Boston 128/93 Area

2015 was another great year!  A year ago, we were talking about the strong year we had in 2014 and here we are a year later and the experience has been pretty much the same.  We continue to show higher than historical volume, and values have increased as well.   Now, as we proceed along into 2016, I wanted to look at how much the market has changed in the past year as well as how we compare to the values of 2005 at the previous market high.

In Woburn, the single family market average sales price finished higher than the previous year.  Sales volume was higher too.  The higher volume occurred in spite of the low inventory levels throughout the year.    On a relative basis, Woburn is more affordable than the other local towns, but maintains a similar growth in home value.  Interest rates remained low and this contributed to first time buyers being able to afford homes even as prices increased.  Interest rates in 2016 are expected to rise slightly.

Looking back over 2015, in the north of Boston area, we saw market time decrease, bidding wars with multiple offers, fewer distressed homes, and continued overall positive feeling about the market.

Statistics and trends are a favorite tool for me.  I can get a sense of where the market is going by looking at the indicators.  Although I have created charts for many individual towns, my favorite chart, which is included with this blog, is of the local 128/93 towns compared to each other.  These include Reading, Burlington, Melrose, Stoneham, Wakefield, Wilmington and Woburn.

Here is a table for these local towns that captures the trend data:

Town Average Sale Price

2015

% Change

2014 to 2015

% Change

from 2005 High

Reading $553,508 +6.47% +15.19%
Burlington $547,275 +6.82% +24.01%
Melrose $528,488 +6.50% +16.56%
Stoneham $494,653 +7.16% +9.19%
Wakefield $492,971 +4.90% +9.50%
Wilmington $461,574 +9.08% +1.71%
Woburn $438,681 +8.47% +8.47%

 

Interestingly, all of the local towns have shown strong gains over the previous year.  A year ago, not all of the towns had exceeded the highs of 2005, but at the end of 2015, all have surpassed the highs of 2005.   Looking ahead, let’s hope for continued growth in local real estate values, and a continued strong real estate market.

Mulittown

Roland Crop 2011 jpeg (1)About the Author: Roland Spadafora is one of the broker owners of RE/MAX Legacy and is known around the office as the expert in market trends and stats. You can learn more about him on his website www.spadaforateam.com

 


2014 was a great year!  We ended the year with higher than typical volume and increased home values.  As we enter 2015, I wanted to look at how much the market has changed in the past year as well as how we compare to the values of 2005 at the previous market high.

In Woburn, the single family market finished higher than the previous year, and the volume although lower, was still higher than historical averages.  Fewer homes were sold, mainly due to a lower inventory.  On a relative basis, Woburn is more affordable than the other local towns, but maintains a similar growth in home value.  Interest rates remain low and had actually dropped over the course of 2014.  The experts predict higher rates in 2015, so a buyer waiting on the sidelines should see this as an optimum time to buy.  Rates could go up, and at least for now, prices are moving up as well.

Looking back over 2014, in the north of Boston area, we saw market time decrease, bidding wars, especially on lower priced homes in need of renovation, fewer distressed homes, and an overall positive feeling about the market.

Statistics and trends are a favorite tool for me.  I can get a sense of where the market is going by looking at the indicators.  Although I have created charts for many individual towns, my favorite chart, which is included with this blog, is of the local 128/93 towns compared to each other.  These include Reading, Burlington, Melrose, Wakefield, Stoneham, Wilmington and Woburn.

Here is a table for these local towns that captures the trend data:

Town Average Sale Price Last 12 Months % Change Last 12 Months % Change from 2005 High
Reading $520,571 +5.73% +8.33%
Burlington $512,312 +14.36% +16.09%
Melrose $497,182 +13.37% +9.66%
Wakefield $468,245 +4.20% +4.00%
Stoneham $461,611 +4.59% +1.90%
Wilmington $423,375 +8.11% -6.71%
Woburn $404,169 +6.43% -1.93%

Interestingly, all of the local towns have shown strong gains over the previous year.  Most of the towns have exceeded the highs of 2005 when the market reached its peak (and just before the economy sent prices downward).  Only Wilmington and Woburn have not returned to the levels attained in 2005.  Looking ahead, let’s hope for continued gains in local real estate values, and thus a continued strong real estate market.

chart

 

Roland Crop 2011 jpeg (1)
About the author: Roland Spadafora is one of the broker owners of RE/MAX Legacy and is known around the office as the expert in market trends and stats. You can learn more about him on his website www.spadaforateam.com


Anyone who has been around the real estate business for 20 or more years has experienced the cycles that are part of real estate growth.  But one thing that we have all come to realize is that over the long haul, real estate increases in value and will almost always be a good investment.

In 2005/2006, our local values hit a peak, and began a descent or correction over the next several years.  Before 2005, we had experienced many years of single to double digit annual appreciation and then the “bubble burst”.  Over the next few years we experienced mostly downs with an occasional hiccup including the influence of the government sponsored “first time buyer credit”.  Interest rates remained low and went even lower and this provided some stimulus once the economic climate improved.  Watching the trends, we learn that we can never predict the bottom until we have turned around and begun heading back up.  As a buyer, I would not be as concerned with “nailing” the bottom, but would want to buy on either side of it.

The recent increase in sales, multiple offers and over asking offers all suggest that we have turned the corner.  The market has changed in favor of the most sellers and as a result it has become a difficult place to be a buyer.  But because we have not returned to the peak values of 2005, there are some homeowners who bought near or at the peak and would not benefit from selling at this time.

With my engineering background, statistics and trends are a favorite tool for me.  I can get a sense of where the market is going by looking at the indicators.  I’ve created trend charts reporting an annual statistic – average sale price for the 12 months of that year.  For the final data point as the current year progresses, I look at the last 12 months.

Although I have created charts for many individual towns, my favorite chart, which is included with this blog, is of the local 128/93 towns compared to each other.  These include Reading, Burlington, Wakefield, Stoneham, Melrose, Wilmington and Woburn. (click on the chart to enlarge)

chart2

Here is a table for the local towns that captures the trend data:

Town

Average   Sale Price

Last   12 Months

%   Change

Last   12 Months

%   Change

from   2005 High

Reading

$463,027

+7.89%

-3.64%

Burlington

$421,152

+10.20%

-4.57%

Wakefield

$417,540

+4.59%

-7.26%

Stoneham

$415,716

+13.27%

-8.24%

Melrose

$414,268

+0.54%

-8.63%

Wilmington

$378,862

+6.44%

-16.51%

Woburn

$359,952

+6.99%

-12.66%

 

In spite of the recent upswing and gains in average sale price, you can see that we have not come back to the highs of 2005.   However, let’s hope we continue in that direction.

About the author: Roland Spadafora is one of the broker owners of RE/MAX Legacy and is known around the office as the expert in market trends and stats. You can learn more about him on his website www.spadaforateam.com