Metrowest Market Update

With many potential buyers trying to determine whether the housing market has bottomed out, many signs are suggesting that prices in Massachusetts, especially in the Metrowest area, have stabilized, and could be showing the beginning of a recovery.

Natick
There are currently 72 active single family homes on the market in Natick. The average list price is $654,000. 41 homes are under agreement, and 126 have sold in the last six months for an average of $481,000.

Last month, 16 homes sold for an average of $454,000, compared to November 2009 when 15 homes sold, also for the average of $454,000.

Wellesley
In Wellesley, there are 113 active single family listings, with an average asking price of $1,929,000. There are 36 under agreement. In the last six months, 163 homes have sold for an average of $1,056,000.

Last month, 21 homes sold for an average of $1,068,000, an increase of 8 percent from November of last year.

Nationally, foreclosures are at a two year low. In the Northeast, median single family home prices rose 2.5 percent from last year during the third quarter of 2010. Mortgage rates are also beginning to increase, largely as a result of the tax cut.

All of this could mean that for buyers looking to buy at the bottom of the market and get a mortgage rate well under 5%, time could be running out. For those considering selling their home, and wondering whether they should wait for prices to recover more, it is important to consider the potential increase in cost of their new home as well. Many sellers will think about holding off until the spring, and while the market looks promising, there is the benefit of less competition, and though fewer, often more serious buyers, during the winter months.