Today as I sit and watch the massive piles of snow quickly fade away I thought it appropriate to share some observations on the state of our local Real Estate market.
So here goes. 2015 saw a modest increase in Randolph home prices. For the year ending 2014 the median sale price in Randolph was $495,000. For 2015 that price rose to $500,000, that is a very modest increase of 1%, still an increase nonetheless! Closed sales were up 9.4%. Sale to list price was up slightly to 97.9%. Average days on market were up 9.2%, which leads me to the next point.
My observations tell me that starter homes in Randolph are in particularly high demand. Generally this price point would cap out at around $500k, but I have seen 1st time home buyers going up into the mid 500's to almost 600K. This , I feel is the result of young professional married couples who have been living in more urban areas and have put off home ownership due to student loans and other conditions and long for their own 4 walls, a back yard and parks and other suburban amenities that the more urban areas cannot provide.
The next tier of house, the "Move Up" house to me, would be in the 600-800k range. This market has seen some challenges in Randolph as these, typically bigger and more luxurious home have not kept up with the demands of our present society. The tax burden and utility costs of these homes are deemed as unecessary burdens by many of today's buyers and thus have fallen out of favor in many cases. What helps in these cases are some extra amenities which contribute to the saleability of the house. In Law suites on the ground level are hugely popular, as well as level, flat backyards for play and entertaining, and finally, a nice In ground pool can be a huge advantage now, as opposed to a negative years ago. I attribute this to the "nesting" factor and peoples desire to turn their homes into a sanctuary, where they dont have to travel to feel like they are on vacation.
The Luxury or in my opinion the $800k plus houses face the same challenges, only on a larger scale. There has to be a "Wow" factor to capture the Buyers desire to want to be in a Suburban location and enjoy the quality of life that it provides rather than have a smaller house but be closer to commuter routes to NYC and the other amenities that more urban locations provide.
Its called the "Europeanization" of America. Smaller and more convenient are the buzzwords. The shift is coming folks. As the Baby Boomers , age, retire and downsize,the Millennials must come and pick up the slack. Lets hope that this comes to pass. The next few years should prove to be very interesting!
Author:Andy Walker Phone: 201-424-8628 Dated: February 4th 2016 Views: 387 About Andy: Andy is an instrumental member of the Gordon Crawford Home Selling Team. Certified as a Buyer's Age...
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