Home Buying in 02481>Question Details

A. Fraser, Home Buyer in Boston, MA

Good morning. A question for the Wellesley agents/brokers. Warren Group numbers suggest that there are

Asked by A. Fraser, Boston, MA Mon May 18, 2009

decreases in price and in volume in Wellesley that seem pretty dramatic. What are you seeing and do you think it is a good time to buy in Wellesley? Thank you.

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The Gormans: Karen & Becky’s answer
Hi....There has certainly been a slide in the number of single family homes sold in Wellesley. This is not as recent an occurence as some think. From 2003 to 2007 the average number of homes sold in Wellesley was 354 per year. In 2008 there were only 271 homes sold; a drop of 24%. We are continuing to see the same trend for 2009. From Jan 1, 2009 to May 18, 2009 only 42 homes have sold; down 50% from the same period last year. The median price for sold properties in the calandar year 2007 was $960,000 (down 1.13 from the previous year); in 2008 the median was $1,102,000 (up 14.79%) and as of today the median for properties sold is $972,500 (down 11.75% from 2008)

Now is a great time to buy in Wellesley as inventory is high at 210. Based on last year's sales of 271 properties this translates to a 9.3 month absorption rate. According to the NAR a six month inventory is normal. Anything below 6 indicates a sellers market and anything above is a buyers market.

I have a spreadsheet with data going back to 1996 if you are interested in it. Feel free to call me at 339-222-8103.

PS....All statistics are from information obtained from the MLS system.

Karen Gorman
2 votes Thank Flag Link Mon May 18, 2009
Hi - I write a weekly real estate column on Wellesley, a twice yearly summary called 'The Pinnacle Report', give seminars on this rather complex question, and I have an hour long lecture on the Wellesley Channel on what has happened to prices since the height of the market - the short answer is I suspect we're at the bottom. Prices, however, don't appreciate or depreciate uniformly in all price ranges. It depends on which price band in which you're looking. If you call Pinnacle we can send you the last few Pinnacle Reports and any of my Realtors can really bring you up to speed. I was having dinner last week with one of the country's leading economists (who happens to live in town as do I), and we agreed that Wellesley had dropped considerably less than most other places across the county. The spread I see is from -10% to -18%, depending on price range. As for the answer to your question - I'd rather have a hard asset like real estate in a blue chip town than anything else these days and I'm actually looking for investment property myself.
0 votes Thank Flag Link Tue May 19, 2009
Great time to get into the Wellesley market because prices are low and volume is up: lot's too look at and the time needed to get a great house for a good price. Wellesley is a luxury market and rarely are there opportunities to get into the area for a competitive price. That said don't expect too dramatic a price reduction on any particular home.

Here is every property currently on the market:
http://www.territoryre.com/idx/search.html?search=true&s…
0 votes Thank Flag Link Mon May 18, 2009
Good Morning -

The prices in Wellesley had not seen the affects that some other areas have. However, the prices have more recently started to drop and more quickly than in some of the other areas that had a slower decline.

The median price in Wellesley for 1/1/08 - 5/18/08 was $817,500. And, the median price for this year from 1/1/09 - 5/18/09 was $500,000. The days on market has dropped this year from the same time period last year of 133 days to this year at 127 days.

Wellesley is, and I believe always will be, a very desirable town to live in. With the prices in all markets and, if it applies to you, the first time homebuyer credit, it is a fabulous time to be buying real estate.

I hope this information helps. If I can be of any other help in Wellesley or any other town, feel free to contact me via email or phone.

Have a great day.

Aimee Siers
Century 21 Commonwealth
29 Washington Street
Wellesley, MA 02481
cell: 508-981-7790
email: aimee.siers@commonmoves.com
0 votes Thank Flag Link Mon May 18, 2009
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