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Health & Fitness

Westwood July Homes Sales: How does it Compare to Bay State Trends?

Westwood home sales up 82% in July. What does it all mean?

“Bay State July Home Sales Increase Reverses Five Month Trend” was the title of an article printed today in the Bankers & Tradesman. 

According to the latest report by the Warren Group, publisher of B&T: “For the first time since January, sales of Massachusetts single-family homes increased in July, posting a 7 percent increase from July 2010”.  The article went on to say: “this reverses a trend of five consecutive months of year over year decreases”.  If you would like to read the entire article, please click here .

According to statistics sourced through the MLS (Multiple Listing Service), the Town of Westwood’s sales trends follow similar patterns. They are as follows:

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Single Family Homes:

Time-frame

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2010

2011

% Change

January

7

4

-4%

February

7

9

3%

March

5

3

-40%

April

12

6

-50%

May

10

8

-20%

June

19

10

-47%

July     

11

20

82%

*In addition, sale of Single Family Homes YTD July 2010 vs. 2011 is 71 to 60 or a decrease of 15%.

Some other facts of note for the Town of Westwood:

  • Median estimated home value is $610,420, 4% ahead of last month and 12% ahead of July 2010
  • Median list price is $766,999, 14% down from this time last year
  • Median Household Income $110,494  

Is the increase of 7 percent in Massachusetts the result of a proverbial “magic bullet”? Far from it! Is it good news? It certainly is. Although as Banker & Tradesman Managing Editor Cory S. Hopkins cautions, “this good news might not be what it appears”. 

Hopkins went on to say, "While it's encouraging to see sales rise in July, we're comparing statistics to a very rough month of July last year.  The expiration of the home-buyertax credits hurt sales volume a year ago, which is skewing the actual picture of the market now."  We agree with Mr. Hopkins assessment.

Given the tax credit program required that all eligible sales close before June 30th of 2010, it’s no wonder the mad scramble to get all sales completed in this time-frame negatively impacted the July 2010 numbers. Other factors positively impacting the Bay State marketplace are as follows:

  • The spring market, which is always our busiest time of year, was delayed with the long winter and rainy April and May. Home sales in April, May and June, will close in July, August and September.
  • Interest rates are at all time lows.
  • Home prices in the Bay State have stabilized.  Buyers and Sellers are being reasonable with their expectations.
  • Unemployment in MA is at 7 percent, which is much lower than the rest of the country.
  • Empty Nestor's are not hesitating to put their homes up for sale and downsize.
  • The Northeast economy will outperform much of the rest of the U.S. Growth.  To understand why, click here

The town of Westwood is very much in tune with the rest of MA.  However it is important to recognize the 82 percent July increase for Westwood versus a 7 percent July increase for the Bay State is skewed and the result of a much smaller sampling. 

With this in perspective, what are some of the subtle factors that are impacting the Westwood marketplace? Very simply, it is the type of buyer that the Westwood market attracts. Tight lending standards are handing over the housing market to frustrated, cash-rich buyers, with non-mortgage purchases making up almost 40 percent of the Massachusetts housing market so far this year. We have seen buyers in Westwood paying cash for properties that would not happen in many other towns in the Bay State. 

In addition, "Affordability conditions this year have been the most favorable on record dating back to 1970, but many buyers are being held back because banks are offering financing to only the most highly qualified borrowers, ignoring a large share of otherwise creditworthy buyers," said Lawrence Yun, NAR chief economist. 

There is no doubt, that a majority of the buyers in Westwood would be classified as highly qualified buyers. Finally, households with children no longer in the school system (Empty Nestors) are making a profitable decision in the long term to downsize sooner than later.  

Brian Greenwood is an Owner/Partner of Greenwood Real Properties/Keller Williams Realty located at 911 High St. in Westwood. To see more blogs/articles like this, go to www.GreenwoodRealProperties.com .

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