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 showed 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. 2010 Q2 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. With the expiration of the credits Q3 eased somewhat, but seasonal buying continued and the changes were not severe. 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.
With the tax incentives expired we can expect to see softening in the fall and winter months of 2010. This normal seasonal effect should not put too much pressure on the market. With mortgage rates near record lows and the economy showing signs of improving there should still be buying interest.
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.
