South Shore Real Estate Market Report: May 2012

| June 3, 2012 | 0 Comments

May turned out to be one heck of a month for single family home sales across the South Shore. The total number of homes sold in May is 23.6% more than in May of 2011. The usual suspects, Plymouth & Brockton, led the way yet again with a total of 64 & 55 homes sold, respectively. Impressively, Weymouth real estate came in a close third with 49 homes sold- a 46% increase from April, and a 57% increase compared to May of 2011.

South Shore Single Family Homes Sold In May 2012 versus May 2011

Single Family Home Sales Are Up By 23.6% Across The South Shore

MARKET TIME

Average Days on Market
West Bridgewater 212
Plympton 172
Cohasset 153
Hingham 150
Duxbury 147
East Bridgewater 144
Carver 140
Whitman 138
Canton 138
Pembroke 134
Middleboro 132
Marshfield 130
Plymouth 128
Scituate 123
Avon 121
Halifax 114
Hanover 111
Hanson 108
Rockland 101
Taunton 99
Norwell 86
Braintree 84
Bridgewater 83
Quincy 80
Weymouth 76
Brockton 75
Easton 75
Milton 67
Randolph 64
Stoughton 63
Kingston 56
Hull 43

 

Sale Price versus Asking Price

I always find this stat to be quite telling. Here we are comparing the “original” asking price the sellers set when the home is first listed to what they actually accepted as a sales price. While it can be dangerous to read too far into this measurement, it is interesting to see which towns are the most reasonable when it comes to understanding the market value of single family homes.

An interesting point to note is that Hingham, Cohasset, Scituate and Duxbury are all in the bottom 7. Potential homebuyer looking in these towns may want to take this into consideration the next time a home comes on the market that is 15% – 20% over their budget.

Percentage paid by buyers versus original list price

click to enlarge

Buyers Market Vs. Sellers Market?

The strength of a real estate market is often described in terms of “Sellers Market” or “Buyers Market.” These market conditions are determined by a simple mathematical concept called absorption rate. Absorption rate is the mathematical representation of the relationship between supply and demand. The total amount of available homes is divided by the total amount of homes sold in the previous month. The resulting number represents the number of months it would take to sell the entire inventory of homes.

A Balanced or “Normal” Market exists when the Absorption Rate is between 5-7 months.
A “Sellers” Market exists when the Absorption Rate is between 1 and 4 months.
A “Buyers” Market exists when the Absorption Rate is over 7 months.

Absorption rate is useful when comparing different price levels ($100k – $200k, $300k – $350k) For our purposes, we are evaluating the rate at all price levels for each South Shore town. Here’s where they stand:

 

Absorption Rate Sellers Market vs. Buyers Market

click to enlarge

Sellers Markets
Plympton
Braintree
Weymouth

Balanced Markets
Quincy
Rockland
Taunton
Scituate
Pembroke

Buyers Markets
Brockton
Bridgewater
Hingham
Avon
Randolph
Milton
Norwell
Marshfield
Plymouth
Whitman
Canton
Stoughton
Hanover
Cohasset
Middleboro
Carver
Hull
Halifax
Duxbury
Kingston
West Bridgewater
Easton
East Bridgewater
Hanson

One Sentence Summary

The number of homes sold this month skyrocketed compared to months and years past, indicating that demand is rising, which means prices should soon follow.

Disclosures:
All information collected from MLSPIN and reflects only transactions that were listed on Multiple Listing Service. Private sale transactions are not included in this data.

Data only represents single family homes. Condominiums & Multi-Family properties are not included in this data.

All information is presumed reliable but is not guaranteed, and should be independently verified. The information provided in this report is provided for personal use only and may not be copied or distributed.

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Category: Real Estate Statistics

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