This newsletter will depict the price bands of homes sold in the last 12 months in several towns. For towns not shown in this newsletter, and an online copy of this newsletter, can be found online at the following website www.MAPropertiesOnline.com.
Price band data is very informative. It gives you a glimpse into the profile of homes within a town. By reviewing the distribution of sales of homes you can begin to get a picture of the price ranges within a town. This information is important for several reasons, but one of the most important reasons is that if you are considering buying in a town it will give you an idea as to whether that is feasible - for instance, if you are wanting to spend $300,000 on a home and you see with the distrubution of home sales in that town that only 2 homes out of over 200 homes sold were in that price range then you know that the chances of you finding a home to buy for $300,000 is slim.
Another reason of how the sales in a town are distributed across the price spectrum is to ensure that you are making a sensible purchase. If you are considering buying a home for $1,000,000 in a town where the majority of homes are within the $400,000 price range and very few homes are sold in the $1,000,000 range, then you know that you will be one of the most expensive homes in the town which is not necessarily the best investment decision.
In the graph for Lexington, above, we can see that the price range with the most sales in the last 12 months is the $1M - $1.5M price range. The next price range with the most sales is the $600-700K home price, with the higher price ranges from there being the next most popular price ranges. This tells you that if you were considering buying a $1.5M home that you would be fairly 'safe' with this investment in this town.
The graph for Belmont shows that the price range with the largest number of sales in it was the $700-$800K price range. Interestingly, 12 months ago the busiest price range was the $600-700K range. This is supported by the increasing average single family home prices for Belmont.
The graph for Bedford shows a different story than for Lexington, and is a good comparison to explain the information value when determining a town to buy in. You can see that the predominance of homes sold in Bedford in the last 12 months was in the $300-$600K price ranges. If you had over $1M to spend, then you would want to consider the information presented in the price band data very carefully and review additional information for this town prior to making that decision. Rather than categorically saying you would not want to buy in this town it would be important to review whether there was actually inventory available at the higher price ranges. It is pretty hard for a house to sell at the $1M price range if there were no homes on the market in that price range, so it may be that any available home for sale in the $1M+ price range sells, there just arent too many to buy
Reviewing the graph for Arlington we can see that the most active price ranges for sold homes is the $400-$500K price range and then the next $100K range saw the next highest activity for sold homes. In this town you would definitely seriously think about spending $1M+ on a home - you may end up being one of the most expensive homes in the town which is not necessarily good investment advice. This is one of the main reasons why reviewing price band data is crucial to understanding the 'profile' of a town.
Winchester's sold distribution looks very similar to that of Lexington. This is what we see 'on the ground' - the price ranges of homes sold in Lexington is very comparable to the price ranges of homes sold in Winchester.
Its important to reiterate that to determine which town you should spend your money in requires multiple sets of data to be evaluated in conjunction with each other. Small subsets of data will show a 'glimpse' of what may be happening but it is only when everything is considered that the totality of the picture can be gleaned as to the real estate market in a town. Additional data points can be found at http://www.MAPropertiesOnline.com
If you would like an estimate of what your home would sell for in today's market I would be more than happy to come by, have a look at your home, and then provide a CMA (comparative market analysis) which will provide you with an estimate of what your home should sell for, along with a marketing plan to get maximum exposure for your home.
If you'd like to chat more about the topic presented here, or the Real Estate market in general, then please call me on (617) 997 9145, or email me at Dani.Fleming@MAPropertiesOnline.com.