Wellesley’s Market Momentum Depends Upon Price Point

With the official start of spring beginning on Friday, let’s take a look at the first 2 months of 2009 in Wellesley:

Some of the major media outlets have decreed certain towns to be “recession proof,” and others have taken attendee numbers at an open house to be the indicator of how well a town’s market is faring these days.

But rather than relying on anecdotal evidence, let’s take a look at the facts.

What are the  relevant numbers and what do they tell us?

WELLESLEY

Homes sales in Wellesley were down 62.5% for the first two months of 2009, compared to the same period in 2008.

Transaction dollar volume slid a precipitous 70.6%.

Wellesley’s average list price for single family homes is currently $1,949,567.

This is in stark contrast and out of balance with the average selling price of $1,077,917, for the first two months of 2009.

With numbers this far askew it may be some time before the market regains equilibrium in Wellesley.

Wellesley’s numbers remained strong for some time after other nearby communities had been hit by the recession.

But the downturn in the economy has clearly caught up with Wellesley’s real estate market.  The vast difference in the average listing price, versus the ACTUAL average sales price means that buyers aren’t perceiving the same value as the sellers do, OR that the higher end is not moving as well as Wellesley’s more affordable/lower range homes.

Buyers seem to be gravitating towards the lower priced homes in Wellesley, and appear to be avoiding the higher end, at this time.

Cervantes House by redjar.

This is not to say that the higher end is at a standstill – if the home is priced right, and the market is clearly responding to homes that are priced according to this market’s value – and has been updated and is in great condition – then it will be perceived as an attractive value.

But homes perceived as “entry” into the Wellesley market, are the ones seeing the most activity right now.


JOHN PRESCOTT

BostonKayakGuy

Top Real Estate Agent for more than 14 years, serving the real estate needs of Wellesley, South Natick, Weston, Needham, Wayland, Newton, Framingham and other MetWest communities. www.johnprescott.net

JOHN PRESCOTT

Vice President

Century 21 Commonwealth

508-523-9252

BostonKayakGuy…The MetWest Scene

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