Massachusetts Home Buyer Guide

The median price of a single-family home in Needham, Massachusetts increased 24.6 percent during the first three months of the year, reaching $860,000, according to the Massachusetts Association of Realtors. 

The median price stood at $690,000 during the first quarter of 2013. The median price of a single-family home in March 2014 was $887,500, an increase of 39 percent from $638,525 in March 2013. Homes sold in March for 97.8 percent of the original listing price. 

Like many communities around the Greater Boston Area, Needham, MA home buyers faced a real estate market with tight inventory, which resulted in a decline in home sales in March and the first quarter. There were 13 single-family homes sold in March, down 35 percent from 20 sales last year. The first quarter posted 35 single-family home sales, a 28.6 percent drop compared to the 49 sales during the same period in 2013. 

The inventory situation may be improving. The number of single-family homes for sale increased 36.6 percent in March. There were 56 single-family homes for sale in Needham as of March 31, 2014, a 36.6 percent increase from 41 available homes on March 31, 2013. New listings increased 42.4 percent from 33 last year to 47 in March 2014. During the first quarter, new listings increased 32.5 percent to 106 new listings compared to 80 during Q1 2013. Months supply of inventory increased 47.8 percent to 2.1 months in March 2014. 

Single-family homes, on average, remained on the market 3.6 percent more days in March, but 32.4 percent fewer days during the first quarter.

The number of condos sold in March (5) and the first quarter (11) in Needham declined 28.6 percent and 35.3 percent respectively. In March, the median price of a condominium declined 2 percent to $612,500. Condos sold in March for 97.5 percent of the original listing price. Through the first three months of 2014, the median condo price declined 27.7 percent to $418,500 from $579,000 during the same period in 2013. Condos sold for 97.2 percent of the original listing price in Q1 2014. 

Condo inventory in Needham declined 69.2 percent from 13 condos in March 2013 on the market to only three condominiums for sale in March 2014. The number of available units translates into less than one month of inventory.

The condo inventory situation isn't likely to improve for home buyers anytime soon. The number of new condo listings declined 82.4 percent in March. There were only three new units listed. For the first quarter, there were 13 new listings, a 55.2 percent decline from 29 new listings in Q1 2013. 

The average number of days on the market for condominiums during the first quarter declined 40.1 percent. In March, days on the market dropped 48.2 percent.