Single Family Market Conditions for Roslindale

Posted by: Tim White
Posted on: Wednesday, July 11, 2007 at 1:49 pm
Categories: Financing, Home Selling, Home Buying, Market Conditions, Roslindale

As part of our continuing series on the Boston real estate market where we examine residential market dynamics at work on a neighborhood by neighborhood basis throughout the city (see Boston neighborhood market conditions ), this week our focus will be on the community of Roslindale.  The methodology we use is to analyze each individual market by property type (e.g. single family, multi-family and condos) since each of these subsets is unique and attract different audiences.  For example, a buyer looking for single family properties would probably not be so interested in what’s happening in the condo market, just as the seller of a multi-family unit may not care so much about what’s occurring in the single family market.  Buyers and sellers are mostly interested in the market subset for which they are considering a purchase or a sale–and that makes sense.  Having said that, there is still value and tying all of the market pieces together in order to get a sense of what is happening to the overall real estate market.  Here at rehubbub.com we look at both the completed puzzle and the pieces of which it is comprised.

Thus, the first installment of our examination of the residential real estate market for the Boston neighborhood of Roslindale will target the condition of the single family market.  Here, we will use as our tools the three (3) key indicators of median sales price, supply and demand and sales rate in order to dissect this market segment.  First, let’s take a look at what’s happening to median sales prices in Roslindale over the past 24 months.

roslindale-meidan.jpg

Overall, the single family market in Roslindale has been surprisingly consistent over the past 24 months in terms of median sales values.  Surprising in the sense that many of the other neighborhoods of Boston in this category have seen more dramatic shifts in median prices than found here.  The above graph shows us that in the past 24 months the median sales prices have fallen only slightly.  By the numbers, in June of 2005 the median sales price was $386,000 while today the median price is $376,000, a difference of only 2.5%.  The good news here is that Roslindale is showing some stability in terms of single family property values.  There is, however, more to this story as the following graph illustrates:

roslindale-supply-and-demand.jpg

In this chart we see at play a couple of trends impacting the Roslindale market such as increasing inventory (no real surprise) and an increase in the number of average days on market (DOM).  In June 2005 there were 65 single family homes available for sale with an average 48 days on the market.  In June, 2007, however, there are 89 listings for sale with an average DOM of 102 days.  The good news is that in the most recent quarter of 2007, the ratio of the number properties under contract versus those offered by sale is higher than it’s been in the past 12 months.  In summary, the market for single family homes in Roslindale is holding its’ own–and while it may be taking longer to sell a home and while there’s more competition now than has been the case, there is still significant sales activity occurring in this market segment.

Now, our final graph

roslindale-sales-rate-msi.jpg

What this graph illustrates is the rate of sales for single families in Roslindale which calculates the exact relationship between properties for sale and properties that have sold or have otherwise been taken off the market.  It is expressed in terms of the Monthly Supply of Inventory (MSI).  This indicator speaks to a tightening market in that it addresses how many months out the current supply of inventory will last.  Presently, it’s at 2.8 months which is fairly short, in fact the shortest it has been since June of 2005.  However, it’s important to note the seasonal adjustment here in the sense that during the summer months the amount of new inventory coming into a market typically slows down.

Considering these three (3) indicators of median sales price, supply and demand, and sales rate (MSI), the single family market in Roslindale is in fair shape.  Opportunities on the buy side remain strong, but sellers who are realistic with pricing should have no problem selling their property–it just may take a bit longer to do so.

NEXT UP:  ROSLINDALE’S CONDO MARKET

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2 Responses to “Single Family Market Conditions for Roslindale”

  1. The State of the Roslindale Condo Market : Rehubbub.com on July 18th, 2007 7:20 am

    […] overall condition of condo market segment.  In the first installment of this series we focused on Roslindale’s single family segment, and soon we’ll explore the health of the multi-family segment, but today it’s all […]

  2. Roslindale Real Estate Market in Review : Rehubbub.com on July 25th, 2007 4:43 pm

    […] state of the market.  The analysis itself was broken down by residential property type (e.g. single family, condos and multi-family ) as each of these segments is distinct in that they not only speak […]

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