Similar to many national and local markets, Needham has shown signs of softening. The supply of homes has grown, while the number of buyers has diminished. Still, well priced homes in good locations continue to sell quickly, often in two weeks or less for close to or at asking prices. This lends support to the notion that the overall market is leveling off slowly, opposed to crashing. Further evidence that the market is gradually softening, is the YTD (June 2006) overall number of sales is actually up from 2005. Through June 2006, 185 homes sold versus 171 homes through the same time a year ago. On the other hand, prices are down 5% over the last year.
At the time of this report, there are 197 single family homes for sale in Needham. The average asking price is approximately $926,000 with an average time on market of 123 days. The market is top heavy with 56 listings asking $1 million or more, which has inflated the average asking price. There are several newly built homes for sale, as speculative building has been prevalent in the recent boom. Until the glut of new homes is absorbed, downward pressure will linger in this area.
Starter homes, priced between $500,000-$600,000, appear to be the strongest sector of the submarket. There remains steady demand from young families looking to enter into this submarket. There is also sustained demand from developers for desirable lots located in good neighborhoods as speculative building continues.
Overall, in Needham, a buyer's market is prevalent. Given the number of homes listed for sale, buyers have the luxury of waiting to find the right property. On the other hand, pricing and the overall number of sales has remained relatively flat, as sellers are reluctant to reduce asking prices.