First a review of where we came from. For Lexington, Ma. the market volume peaked in 2004, and the prices peaked in 2005, at an annual median price of $725,000. Through 2007 prices had shown approximately a 6% pullback, 2008 set a new price peak of $750,000 despite lower volume. 2009 prices resumed the downtrend and ended with a median price of $650,000 down 10% from the 2005 peak. The number of homes sold in 2004 was 357. In 2009 319 homes sold a slight increase from 2008. The graph below shows the numbers for the last 10 years. The line is for the median price and the bars for the numbers of homes sold.
There is a seasonal effect on the Lexington market with Q1 (Jan, Feb, Mar) and Q4 (Oct, Nov, Dec) being market lows. This seasonality should be taken into account when looking at any monthly data. 2010 Q2 volume is the highest level in several year's as we continued to see the effect of the tax incentive. Q2 prices eased slightly as many smaller, lower priced, homes sold. The graph below shows the Quarterly numbers for the last 4 years.
The line is for the median price and the bars for the numbers of homes
sold.
In 2009 Lexington finally showed the effects of the national and state trends with price weakness, and for the first time in several years there were some low end homes in the $300,000 price range. 2010 continues on a strong note showing benefits from the Tax incentive allowing sellers to move up from surrounding towns into Lexington. We should see this continue into Q3 so I expect 2010 to be another good year for Lexington Real estate.
There is still demand for homes and Lexington continues to be a high value market, and homes can be sold quickly. Homeowners who purchased more than 4 or 5 years ago still have significant equity, those having purchased or re-financed recently unfortunately will likely not see price appreciation until 2010 and beyond.
For a monthly view of the market click here for the Lexington Monthly Report, or call Mike at 781-771-7216 for a detailed review of how the market can affect your goals.
