Tuesday, January 1, 2013

2012 Longmeadow Real Estate Results

Shown below are a series of charts summarizing the latest single family home sales for Longmeadow, Massachusetts.  These latest results for the January - December 2012 period include both MLS and FSBO transactions and are based upon public information obtained from the Hampden County Registrar of Deeds website.

Longmeadow home sales in 2012 were the highest since 2007 when the current real estate decline began.
  • There were 190 home sales in 2012 vs. 146 in the year earlier period- a 30% increase (see figure 1 below).
  • In addition, home sales in December (21) were the highest total since the current housing downturn began and 110% higher vs. December 2011 (10).
However, further examination of the recent data shows the continuation of some troubling trends…      
  • Median prices appear to have stabilized at ~ $270,000 after reaching a low point in May 2012 at ~ $244,000.  The median sales price (6 month trailing average) for December 2012 was $269,900 as compared to $312,000 one year ago (13.5% lower) - see figure 2 below.

    The median sales price for all of 2012 was $267,000 vs. $315,000 for all of 2011- a 13.5% decline.  This latest median sales price was 21% lower than the peak reached in 2006 ($339,000) (see figure 3 below).

  • In 2012, 64% of the homes (121 out of 190) were sold below the current official assessed value26 homes were sold at prices more than $100,000 below the assessed value.

    In 2011, 48% of the homes (70 out of 146) were sold below the assessment value (see figure 4 below).

    2012 was particularly noteworthy with regard to sales price vs. assessed value where the total sales value was 8.6% lower than the total assessed value.  Since 2008 this difference has averaged less than 1% difference (see Table I below).
  • In 2012 there were only 29 homes (out of 190) that sold at a price of $400K or higher. Currently, Realtor.com has ~ 50% of the MLS listed Longmeadow homes for sale at prices greater than $400K.
Historically low mortgage interest rates and attractive prices continue to help the Longmeadow real estate market gain some momentum with the number of 2012 sales being the highest since 2007. Prices continue to remain soft with the large majority of homes being sold priced less than $400K.

Many real estate markets across the country have shown strength in 2012.  Hopefully, employment will increase and consumer confidence will continue to improve so that the housing market can become more normalized.
Figure 1

Figure 2
Figure 3
Figure 4

Table I- Total Sales vs. Corresponding Total Assessed Value


Here is a link to the data for 2006-2012 Real Estate Transactions that were used to develop the above graphs.

LongmeadowBiz.com- Longmeadow's #1 Business and Community website
LongmeadowMA.org- Longmeadow's Newest Community Website