First a review of where we came from.For Woburn, Ma. the market volume peaked in 2003, and the prices peaked in 2005, at an annual median price of $397,750. Prices had shown approximately a 17% pullback through 2008. 2009 has shown a price increase to $342,000. The number of homes sold in 2003 was 254. In 2009, 203 homes sold so the volume is down 20% from the 2003 peak. 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 volume effect on the Woburn 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. 2009 Q4 volume showed good strength and prices rose slightly also. I believe this was in large part due to the first time home buyer tax
credit.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.
There have been fewer homes on the market for two years now with sellers holding homes off the market and thereby restricting the supply. The strong demand this fall should encourage sellers to market their homes this year. With the tax incentives expanded we can expect to see
continued market strength in the first half of 2010. Traditionally Q1
is a market low and with the November rush over it was lower
than Q4 '09 and previous years despite the tax intervention. Q2 can be expected to be very strong this year.
What this means for homeowners in the near term is that there is still demand for homes and that while sale prices will be down from 2005 highs Woburn continues to be a high value market, and homes can be sold. 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 for another few years. Still, the tax benefits and long term investment growth
of a home still should make everyone who is able look to purchase a
home during this market slowdown.
For a monthly view of the market click here for the Monthly Report, or call Mike at 781-771-7216 for a detailed review of how the market can affect your goals.
