The hottest housing markets in Massachusetts in Q3; let the price cutting begin (BBJ DataCenter)
- Craig Douglas
- Managing Editor, Online & Research-Boston Business Journal
The unseasonably cool temperatures of late summer appear to have had an equally chill effect on the state's housing market.
The market's third-quarter downshift was apparent in communities from Cape Cod to the Berkshires, as sellers in high-end as well as lower income areas of the state resorted to deep price cuts to lure buyers their way. According to data provided by Zillow, some 42.7 percent of all homes listed for sale saw a reduction in their list prices during the three-month span that ended Sept. 30, while the average price cut per listed home was 5 percent.
In the prior quarter, only 33 percent of listed homes reported cuts in asking prices, and the average reduction from their original list was 4.3 percent.
The market's apparent softening was widespread. For example, in the Western Massachusetts communities of South Chesterfield and Brimfield, more than 70 percent of listed homes saw price cuts in the third quarter. In Lawrence, where 49 percent of listed homes saw pricing reductions, the average cut was 8.8 percent. Further south in Newton's tony Nonantum neighborhood, some 38 percent of listed homes combined for an average price cut of 8.2 percent.
Compare that to the second quarter, when only 27 percent of Nonantum's listed homes reported price reductions and the average cut was 3.7 percent.
The findings were part of the Boston Business Journal's quarterly Hottest Housing Markets report derived from a collection of sales and pricing data provided by Zillow. The quarterly rankings use a weighted formula to identify the local home markets most — and least — in demand in a given period, in this case the three-month span that ended Sept. 30. The Q3 research included data for 283 ZIP codes spread throughout the commonwealth.