Towns see Strong Demand, Effect on Prices Can be Seen
I'm going to show you a chart. But before you go see the chart, I need to give some preliminary disclosures:A) This chart shows the change in prices based on $/sq foot from the winter to the end of the summer. That's not a huge change in time, and so, one could consider this data "half-baked".
B) Some towns I track are very small - so only a few data point can have outsized effects. Over time, these will get ironed out, but for now, you'll need to put an asterisk next to all the small towns. (Any town with less than 60 sales in six months is small).
C) Some of the towns had particular bad months over the winter, and better springs, so they have had an outsized effect on the graph. Again, over time, it will work it's way out, since I'll continue to track this from the "baseline" data, and it will get more accurate in six months to a year.
OK, enough pre-amble. Let's see who did the best:
Interpreting the Results on Home Price Changes in Metrowest
Easy stuff first: More towns had increases than decreases, and the increases were larger, so that means prices in the region are going up.Boylston and Charlton are small towns that had good bumps. We'll see if they maintain those gains. As Worcester suburbs, they had the most to gain when the market tightened up, as they were hit the most by the crisis.
Framingham and Ashland are on the lowend with negative prices despite strong demand primarily because they were coming off great springs, and they cooled off a bit last winter -at least partially because what was left in these towns was property that needed a lot of work. I wouldn't read too much into that, as prices are going up in those towns, and this will bleed out from the baseline data.
Let me know if you have a question about a town in particular!
Matt
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