Lexington, MA - Real Estate Trends Analysis by Key Prime Realty

The Lexington, Massachusetts real estate market remains highly competitive, with homes experiencing significant price appreciation over the past year. As of May 2024, the median home value in Lexington stands at $1,593,394, representing a substantial 12.4% increase from the previous year.Price Appreciation and Market TrendsLexington’s housing market has shown remarkable resilience and growth. Homes for sale in Lexington are in high demand due to the city’s vibrant community and excellent amenities. With homes for sale in Lexington, buyers find great value and a wonderful lifestyle. Single-family homes in the area have seen varying levels of appreciation based on the number of bedrooms:
– 1-bedroom homes: 4.3% increase – 2-bedroom homes: 4.8% increase – 3-bedroom homes: 16.3% increase – 4-bedroom homes: 5.0% decrease  – 5+ bedroom homes: 0.5% decrease 

Despite some fluctuations in larger homes, the overall trend indicates strong price appreciation, particularly for smaller and mid-sized properties.Homes for SaleAs of May 2024, there were 125 homes available for sale in Lexington, representing a 28.9% increase from the previous month. The inventory breakdown by bedroom count is as follows: 

– 1-bedroom: 1 home – 2-bedrooms: 8 homes – 3-bedrooms: 23 homes – 4-bedrooms: 33 homes – 5+ bedrooms: 60 homes 

This increase in inventory provides more options for potential buyers, but the market remains competitive.What Buyers Should Look Out For 

1. Competitive Bidding: The Lexington market is very competitive, with homes receiving an average of 7 offers. Buyers should be prepared for potential bidding wars and consider making strong, competitive offers. 
2. Quick Sales: On average, homes in Lexington sell after just 16 days on the market. Buyers need to act swiftly when they find a property they like. 
3. Above-List Pricing: Many homes in Lexington sell for above the list price. The average home sells for about 4% above the list price, while hot homes can go for up to 9% above list price. Buyers should factor this into their budget and expectations. 
4. Waived Contingencies: In this competitive market, some buyers are waiving contingencies to make their offers more attractive. While this can strengthen an offer, it also increases risk. Buyers should carefully consider the implications before waiving any contingencies. 
5. Mortgage Rates: While rates are projected to decline throughout 2024, they remain higher than in recent years. Buyers should stay informed about rate trends and consider how they might affect affordability. 
6. Property Types: The Lexington market consists of new construction (16%), off-market teardowns (11%), and existing homes (73%). Buyers should consider their preferences and the potential costs associated with each type of property. 
7. Demographic Shifts: An increase in Millennials entering the housing market and Baby Boomers downsizing is influencing the market dynamics. This could affect competition for certain types of properties. 
8. Presentation and Pricing: While the market is strong, homes that are well-presented, properly marketed, and realistically priced tend to perform better. Buyers should look beyond the listing price and consider the overall value and condition of the property. 

In conclusion, the Lexington real estate market offers opportunities for buyers, but it requires careful navigation. With strong price appreciation, quick sales, and competitive bidding, buyers need to be well-prepared, act decisively, and potentially work with a local real estate professional to succeed in this dynamic market. Homes for sale in Lexington attract many buyers because of the city’s vibrant community, excellent schools, scenic parks, and convenient access to shopping and dining, making it a desirable place to live.