After a busy start to the year, the winter weather put the brakes on the housing market during February. Back-to-back snowy weekends meant fewer homes coming on the market, but hardy buyers were still out to explore the limited inventory on offer. Consequently we saw some increase in sales compared to the prior year, as homes that were listed in first weeks of the year closed. Here are a few of the key trends we saw emerge during the past month:
Dramatic Price Increases: Concord and Lexington saw significant jumps in average and median sale prices compared to last year, with Concord’s median price increasing by 55% and Lexington’s by 82%. Similarly, Winchester, Lincoln, and Waltham also experienced double-digit price growth. This suggests strong demand for high-end homes in these areas, possibly driven by low inventory and competitive bidding.
Fluctuating Market Activity: While some towns like Westford and Boxborough saw an increase in the number of listings, others, particularly Lexington (-47%), Arlington (-36%), and Waltham (-50%), experienced notable declines. The limited inventory in these towns may have contributed to rising prices and a competitive market environment.
Market Speed Variations: The number of days to offer and days on market varied significantly across towns. In Acton, for example, the average days to offer increased to 52 days, while other towns like Westford and Winchester saw a faster-moving market (with 11 and 13 days respectively). This suggests that while homes are selling for higher prices, buyers may be taking longer to commit due to affordability concerns.
Increased Demand and Competition: Most towns experienced sale prices either at or above asking prices, with Arlington, Bedford, and Westford selling for 104-105% of the list price. However, towns like Concord and Lincoln saw a drop in this ratio, possibly indicating some price resistance at higher price points.
Variable Market Growth: Towns such as Concord and Lincoln saw triple-digit increases in total market volume, reflecting a surge in high-end sales. On the other hand, towns like Arlington and Waltham had a noticeable drop, indicating fewer transactions despite rising prices.
In summary, February’s housing market demonstrated a mix of rising prices, fluctuating inventory levels, and varying time on the market across different towns. The luxury segment, particularly in Concord, Lexington, and Lincoln, is seeing strong demand, while some mid-range markets are experiencing longer selling times. Limited inventory in key towns continues to drive competitive pricing, and buyers remain willing to pay premiums in select locations. However, affordability concerns and longer decision-making times could influence market trends in the coming months. Speak to one of our local real estate agents for the most accurate data and analysis for your area.
