Norwood residential real estate inventory still remains low as sales statistics for the 2nd quarter of 2017 showed a significant decrease. The number of residential Norwood properties sold in April, May and June, 2017 was 83, a drop of 22% from 106 last year.
Norwood's numbers were also significantly off track in total sales volume. In year-over-year figures, Norwood showed a drastic drop in sales volume from $44,374,044 in 2016 to $35,757,450 (19% decrease). Sale prices, however, rose a modest 3% in the same time frame with the average sale price rising $418,623 in 2016 to $430,813 in 2017.
Overall, the number of land documents recorded in Norfolk County, which included residential and commercial properties, (such as deeds, mortgages, liens, foreclosures, mortgage discharges, homesteads etc.) during the Registry’s 2nd quarter was 39,645, a 6% decrease from the previous year.
“This decline can be attributed to a significant 16% reduction in lending activity during the quarter," Norfolk County Register of Deeds William P. O'Donnell noted.
In terms of borrowing for both residential and commercial, Norfolk County also showed decreasing figures. Only 7,255 mortgages were recorded at the Registry during the quarter compared to 8,622 for the same time period in 2016. Total mortgage borrowing was $3.7 billion for the second quarter compared to $5.2 billion during the 2nd quarter 2016.
“Clearly, the increases seen in interest rates are causing consumers to be cautious when contemplating borrowing to pay for big ticket items such as home renovations,” O'Donnell said.
While Norfolk County foreclosure activity has recently shown encouraging drops in numbers in previous months, the 2nd quarter of 2017 did not bring good news to homeowners with 78 foreclosure deeds recorded, a substantial 30% increase in year over year statistics. However, Notice to Foreclose Mortgage recordings, the first step in the foreclosure process, dropped by 25.9% with 160 Notice to Foreclose Mortgages recorded.
“While the increase in foreclosure deed filings was disconcerting, I continue to be optimistic that the reduced numbers we are seeing with Notice to Foreclose Mortgage filings bodes well for the future,” Registrar O'Donnell said.
Low inventory continues to plague potential homebuyers looking to move into Norwood as well as Norfolk County, however, average sale prices in Norwood continue to escalate and homeowners looking to sell their homes are receiving optimal rates in record time. With less homes to choose from, properties are also selling quickly with the average days on market listed at 36 compared to 49 last year.
Going forward, the fluctuation in interest rates could affect home sale numbers and prices in Norwood as well as the County but so far this year, the news remains financially beneficial in Town for the limited amount of homeowners who are ready to make a move.
Issue Date:
August, 2017
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