Greetings, real estate enthusiasts! We’re bringing you the latest scoop on the ever-changing landscape of Newton, Massachusetts. If you caught our recent video, you're already in the loop. Now, let's break down the key highlights that Ed and John discussed and take a closer look at the nuances of Newton's real estate market in 2023.

Cash is King, but Who's Buying in Newton?

In our video, we teased a surprising revelation: cash transactions in Newton. You might be wondering, who are these cash buyers, and how does this impact the market?

Cash Transactions: Unveiling the Numbers

John took a deep dive into the data and discovered that a staggering 22.6% of homes sold between January and October this year in Newton were purchased without a mortgage. It's not just the high rollers; these cash purchases span a wide range, from $670,000 to a whopping $6 million. But here's the twist—over 58% of buyers in the $3 million and above range still opted for a loan.

Mortgages: Still the Lion’s Share

Of the 250 buyers who took out a mortgage to purchase a single family home in Newton so far in 2023, we found that the average loan amount was $1,355,000! On average, they borrowed 65% of the purchase price and put down 35%. This makes the average down payment just over $725,000.

A Notable Trend: Developers Retreat

Intriguingly, our analysis unearthed a significant drop in developers snapping up properties, both on and off the market. Will this trend continue? Keep an eye out for updates!

The Numbers Game: Newton's Residential Landscape

Single Family Homes: Stability Amidst Challenges

Despite a dip in the number of single-family homes sold (an 18% decline), Newton's real estate market remains stable. The lack of inventory, combined with higher interest rates, hasn't thwarted the upward trajectory of home prices. The average single-family home is dancing just below the $2 million mark, with the most popular price range being $1 million to $2 million.

Condos: A Diverse Range

Condo prices in Newton are on their own rollercoaster. Ranging from $395,000 for small apartment-style flats to $2,800,000 for huge luxury townhomes, the condo market caters to a diverse set of buyers. With a median price of $987,000, approximately 42% fall between $500,000 and $1 million, and another 42.8% in the $1 million to $2 million range.

Interest Rates: A Wild Ride

The wild ride of 2023 wasn't limited to home prices. Mortgage interest rates started around 6.5% in January, fluctuated between 6-7% until August, and then skyrocketed to about 8% by October. It’s no surprise that in the late summer we started to see some buyers leave the market. Despite this, prices remained resilient, and the market retained its vigor due to the low inventory. With the mortgage rates starting to decline slightly in the last few weeks, there are still plenty of buyers who are actively seeking a home in Newton!

Newton Villages Breakdown: What's Happening Where

John and Ed took a closer look at the different villages within Newton, breaking down the average sale prices for both single family homes and condos by zip code. Let's quickly dive into each village's value.

Newton Upper Falls (02464)

Single Family: $1,060,000 (Up 0.5%)
Condos: $1,013,000 (Up 26%)

Newtonville (02460)

Single Family: $1,446,000 (Down 4%)
Condos: $1,266,000 (Up 11%)

Auburndale (02466)

Single Family: $1,526,000 (Down 1%)
Condos: $1,029,000 (Down 12%)

Newton Highlands (02461)

Single Family: $1,732,000 (Up 11%)
Condos: $1,246,000 (Up 3.25%)

Newton Lower Falls (02462)

Single Family: $1.8 million (Up 25%)
Condos: $517,000 (Down 17%)

Newton Corner and parts of Nonantum (02458)

Single Family: $1.9 million (Down 10%)
Condos: $1,067,000 (Up 5.4%)

West Newton (02465)

Single Family: $2,075,000 (Down 2.5%)
Condos: $1,134,000 (Up 2.3%)

Newton Center (02459)

Single Family: $2.125 million (Up 10.2%)
Condos: $1.435 million (Up 18.27%)

Chestnut Hill (02467)

Single Family: $2.416 million (Down 23%)
Condos: $763,000 (Down 2.46%)

Waban (02468)

Single Family: $2,568,000 (Up 12.81%)
Condos: $1,733,000 (Up 5.29%)

What's Next for Newton's Real Estate?

As we approach the end of the year, the big question is—what's on the horizon for Newton's real estate market? Will the trends observed in 2023 persist into 2024? Stay tuned as we keep you updated on the pulse of Newton's housing scene.

Dwell360 is an elite residential real estate firm based in the Village of Waban in Newton, Massachusetts, servicing the cities and suburbs of metro Boston. Owned by REALTORS Ed Johnston and John Lynch, Dwell360 is a leader in luxury real estate throughout Newton, Needham, Boston, Brookline, and other communities of the Greater Boston Area and on Cape Cod. Search for homes in Massachusetts or give us a call!

Newton Real Estate Market Update 2023: A Rollercoaster Ride