Each quarter I prepare a summary of the sales data in the
town, this data provides a longer term, and seasonal view of what the market is doing.
For a better understanding of how this relates to your specific
interests please give me a call at 781-771-7216.
First a review of where we came from. For Burlington, Ma. the Real Estate market volume peaked in 2004, and the prices peaked that same year at an annual median price of $419,900. Prices have shown approximately a 12% pullback from the 2004 highs. The number of homes sold in 2004 was 213. In 2009 161 homes sold, so the volume has improved over 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 mild seasonal volume effect in the Burlington 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 was the highest sales level in 4 years, I believe in large part due to the first time home buyer tax credit. Q3 volume dropped somewhat but remained at a good level. Prices appear to have begun to show a gradual increase off 2008/2009 lows. 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.
The tax incentives can be credited for giving unusual market strength in the second half of 2009, and this continued in 2010 with the additional effect of prices showing strength. Interest rates remain at historic lows which should continue to support home prices. We can expect the normal seasonal slowing, but Burlington appears to be doing well. Real estate is a
local market, and locally things are stable, so for those
buying and selling homes in Burlington things look reasonably stable.
What this means for homeowners in the near term is that there is still demand for homes, and homes can be sold but there is price pressure. Homeowners who purchased more than 5 or 6 years ago should still have good 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 Burlington Monthly Report, or call Mike at 781-771-7216 for a detailed review of how the market can affect your goals.
