Newton Houses Take A Dive…Time on Market Dropping Fast!

Newton Houses sell timeMarket time for sold houses in Newton is dropping fast.  In May 2012 the average days on market for a single-family house in Newton was 64 days, less than half from the recent peak in January 2011 of 155 days.

May of 2012 has many similarities to the peak of the housing market boom in May 2005.  Time on market was almost the same, just over two months.  Average sale price is in the mid $900,000’s, and the number of sales is around 50.

But similar numbers are not necessarily results of similar conditions.  Buyers are less exuberant and more cautious, and sellers are still waiting for better market prices.

The buyers who are moving  are the ones who must. Buyers who have less pressing needs are taking their time.  In 2005, my sense was of greater urgency, a fear of missing a home, of pricing rising too fast, or mortgage rates going up.

Some agents say conditions are the same, I disagree.  Multiple offers and shortage of homes make it seem so.   But don’t forget we’re in a different economy.  Today, many potential sellers are unable to sell due to loss of equity.  Mortgage regulations leave sub-prime buyers out, and you need more than a pulse to qualify for a loan.

If you believe conditions are as they were during the boom then brace yourself because we all know what happened next.  Instead, this is just the start of a new cycle and more needs to change to return the confidence of seven years ago.

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