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Pinnacle Residential Properties - Spring Market Report

CONTACT: Elaine Bannigan, 781-237-5000

Pinnacle Residential Properties Q1 2014 Market Research Shows Shrinking Supply of Affordable Housing in Boston’s Western Suburbs

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Pinnacle Residential Properties has just released a first quarter multi-year comparison of the single-family residential real estate market activity in Massachusetts’ western suburban towns of Wellesley, Needham and Weston. 

Elaine Bannigan, owner of Pinnacle Residential Properties, stated “Market conditions are uneven across the nation and across the state.  In terms of 2014 Q1 Massachusetts sales, there were fewer transactions (down 6%) which, in large part, can be attributed to the severe weather. In terms of supply, during Q1 2014 the overall Massachusetts single family housing supply was not significantly different from that of Q1 2013, neither in number of available properties nor in price distribution.”

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Bannigan continues, “The median price rose 10% because there were 7% fewer sales of homes priced under $1M and a 20% increase in the number of home sales over $1M. Trade-up buyers are discretionary; they want to but don’t have to move. Generally, an increase in trade-up market activity is spurred by increased consumer confidence, an increase in well-paying jobs and in job security.  Also, this year it isn’t an uncomfortable stretch for buyers to trade up, given the strong prices they can yield when they sell their lower priced home and still enjoy low interest rates.”

This market research within key western suburban towns is in sharp contrast to the rest of the Commonwealth. For instance, in Wellesley, Weston and Needham, there was a steep decline in the number of available properties priced below $1M.  Many factors are responsible, for example: 

·      A sharp increase in demand from growing segments - first time, boomerang, international buyers.

·      A slower trade-up market; until Q1 2014, people were cautious about taking on more debt and instead, chose to stay put. Their existing houses would have added to the under $1M supply.

·      Baby boomers who now live in these suburbs in homes worth less than $1M do not have other nearby, affordable, and convenient living choices. Staying put and aging in place is their alternative to relocating.

·      Last, builders are scooping up many lower priced homes and replacing them with new homes that are much more expensive.  Young couples are shut out.

For the past 10 years, Pinnacle has written and published “The Pinnacle Report,” a biannual review of the Wellesley/Weston and Needham/Dover markets. These complimentary reports are published in January and in August and are available upon request via the company’s website: www.pinnaclehouses.com.

Bannigan has been marketing and selling real estate in the Wellesley/Weston area for 30 years, and contributes primary industry research insights to local media. She has been the recipient of the Wellesley Chamber of Commerce ‘Business Professional of the Year’ Award, and the company she founded and owns, Pinnacle Residential Properties, has been the recipient of the Better Business Bureau Torch Award for Ethics and Excellence.

Click here for the full spring market report: https://storify.com/dennehypr/pinnacle-residential-properties-q1-2014-market-res 

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