South Shore Real Estate Report – January 2013

| March 4, 2013 | 0 Comments

The South Shore had the most active January in 5 Years! Not since the peak of the real estate bubble in 2007 had the South Shore sold more homes in January that it did this past January. 242 single family homes were sold across all South Shore towns.  As expected, Quincy, Plymouth & Weymouth once again recorded the most sales with 32, 28 & 26 respectively. While 242 transactions is far below the monthly totals from other more active months in the year, the fact that it was the busiest January in 5 years is a great sign for the coming spring market.

Massachusetts South Shore Real Estate

As in December, the length of time it takes for a home to sell continues to decrease. On average it took about 3 1/2 months to sell those homes in January. That’s pretty good for the month of January which typically includes homes left over from the summer and early fall markets that weren’t as desirable.

Massachusetts South Shore Real Estate
Massachusetts South Shore Real Estate
Marshfield’s January Median Sale Price increased for the 3rd year in a row.

In a recent report by The Warren Group; Massachusetts saw a rise in median sale price of 6.8% in January which is great news for the state. Unfortunately, the South Shore has yet to see a rise in the median home prices. The Median sale price for the South Shore in January was $305,000. It was $311,000 in January of 2012 and $319,000 in January of 2011.

Massachusetts South Shore Real Estate Median Sale Price

It’s no surprise that Hingham and Cohasset had the highest median prices. However, Marshfield’s January median sale price increased for the 3rd year in a row which came out at $416,500 up from $382,400 the year before.

Massachusetts South Shore Real Estate

The same is true when looking at the Average Sale Price. The positive numbers in transactions aren’t equating to higher sale prices and the average sale price during the month of January has been declining.

Massachusetts South Shore Real Estate Average Sale Price
Massachusetts South Shore Real Estate

Some towns have already transitioned into sellers markets. Braintree, Quincy & Weymouth have been showing low absorption rates for months now as indicated in our December and November reports.

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 previous months. The resulting number represents the number of months it would take to sell the entire inventory of homes in any given area.

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.

Massachusetts South Shore Real Estate

So what does this all mean? With higher transaction counts, low inventory & low interest rates that are ticking slightly up, home sellers are in a strong negotiating position. Even though South Shore home prices aren’t showing increases yet, a healthy spring market should change that and if you are looking to buy a home in the near future, this may be the last chance you have to take advantage of low home prices.

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.

The South Shore towns are defined by SimplySouthShore.com as the towns listed here

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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The S3 Team was created by a group of local real estate agents, designers and business partners from Massachusetts South Shore. Trying to tell the story of the South Shore community and striving to connect the world to all the amazing things that make the South Shore great.

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