Happy New Year! Here’s to a happy, healthy and prosperous 2019.
Many thanks to each of the community organizations and businesses that contribute to the town on various levels. These organizations contribute to making the Town of North Reading a very welcoming community. As a life-long resident of North Reading, I have seen our small town grow substantially over the years. I was fearful at times that it may lose its small town feel and most importantly, its sense of community. I am happy to report that this has not occurred at all. The most important aspects of community and caring for all residents, has continued to grow as the town has grown.
Where does North Reading stand regarding the Real Estate market? Well, this past year was a very complex year for Realtors, buyers and sellers. When you compare the Inventory from 2017 to 2018, it has shown a significant decrease in properties that were for sale across town and across all categories.
Here is a look at the North Reading 2018 housing market:
Single Family Homes:
In 2018 there were only 103 total sales in North Reading as compared to 177 in 2017. The average number of days on the market was 39.62 and the average sale price was $621,800. This represented a year over year increase of $26,682. The decrease in available inventory increased the demand among willing and able buyers. This resulted in an increase of final sale prices. During the months of March through August we experienced multiple bidding wars on available properties. There was a dip in buyer activity during the weeks of September and early October, but we saw a significant up-tick by mid-October. This continued right up until the week before Christmas. We had 15 home closings during the month of December and saw 14 properties receive accepted offers and go under agreement during the final month of the year. There is a definite change occurring in our housing market. The months during the spring and summer have traditionally been perceived as the prime “Selling Season”. However, at one point this fall, we had more homes on the market than we did during the spring and summer months. What is the reason for this change? There are multiple reasons for this occurrence. The primary reason this past year was that the federal government had announced rate hikes. Several sellers saw what was happening in the earlier market and wanted to sell quickly in order to capitalize on the increased sale prices.
In 2018 there were 37 total sales in North reading as compared to 53 in 2017. The average number of days on the market in 2018 was 34.03 as compared to 44.31 in 2017. The average sale price in 2018 was $333,683, which represent an increase of $2,312. The price increase was not that significant given the decrease in inventory. I believe this is partially due to the new “55 Plus” development being built by Pulte Homebuilders on Lowell Street. These garden style condominiums are being priced at levels which will allow North Reading residents, both past and present, to remain in town or to return to town in order to be closer to family. I applaud Pulte for having this vision. This has helped many seniors who otherwise may not be able to afford to stay in town.
What Type of Market are we in?
This is also a difficult question to answer due to many contributing factors. Some properties received multiple offers in short order, which in turn created a bidding war. However, other properties languished on the market and needed price adjustments before receiving offers. Pricing your home correctly from the outset is a key factor in a successful and timely transaction.
Buyers today are extremely savvy and take full advantage of the many online resources available to them. The old saying of “location, location, location” still holds true to this day. However, a clear education and understanding of the Real Estate market is truly what is needed. Real Estate is local, and it is not just local to a town, but to its specific neighborhoods. I forecast that the housing market will continue to be strong and robust in 2019. I do not foresee the frenzied market and crazy price increases we saw this past year. I see more of a steady increase as supply continues to be lean and demand continues to be strong. The federal government stated that it will be some time before we see another hike in mortgage rates, which is great news for both buyers and sellers.
As you can see from the numbers, Real Estate continues to be a very wise investment and North Reading continues to be a very desirable community. I attribute this to our award-winning school system and the zoning bylaws that are in place, there continues to be a distinct line between residential and commercial bylaws. The town’s close proximity to Boston and overall sense of community will always continue to appeal to buyers.
If you are considering a Real Estate transaction or if you have any Real Estate questions, please feel free to give us a call 978-664-3700. I have been a full time Realtor for the past 15 years and have been the most successful Realtor in North Reading for the past 7 years. The Realtors in my office are all North Reading residents and are involved in our community on a number of different levels. We study the North Reading and surrounding markets daily and keep ourselves up to date with the changes occurring in the market on an ongoing basis. This has allowed us to sell our listings at 98% of original list price and receive multiple offers on 90% of our listings.
Once again, best wishes for a happy, healthy and prosperous 2019.