A recent New York Times article about the economy is helping put the Federal Reserve’s surprisingly large interest rate reduction on Tuesday into perspective, and does a good job of explaining that while the cost of fruits, vegetables, clothing, vehicles, and (most important in our world) houses, are all dropping, these declines have raised fears of a deflationary spiral. “There is good reason to fear deflation. Once prices start to fall, many consumers may decide to reduce their spending even more than they already have. Why buy a minivan today, after all, if it’s going to be cheaper in a few months? Multiplied by millions, such decisions weaken the economy further, forcing companies to reduce prices even more.”

The article also discusses a phenomenon called the “sticky wage theory” explaining why wage prices don’t fall during a recession, and why this along with price drops, helps to keep “real incomes” (inflation adjusted) from dropping too much. Read full article…

Of course this got us thinking about properties that had price drops in the last few months. We’ve assembled a list of properties that have had “significant” price reductions (10% or more) in the last six months just for good measure.

The biggest decrease we’ve seen so far has been this approved short sale in Revere originally listed for $399,900 currently offered at $185,000, a whopping 54% reduction. Suprisingly, it looks to be in unbelievable condition! Have a bit more to spend? Check out this mini Waterfront mansion in Worcester County offered at $500K from it’s original price of $875.

Territory Rating: Strong Buy - Andover Real Estate for Sale

Andover is a town in Essex County, Massachusetts, United States. It was incorporated in 1646 and as of the 2000 census population was 31,247. It is part of the Boston-Cambridge-Quincy, Massachusetts-New Hampshire metropolitan statistical area. - Wikipedia.com

Sold Data:
Average Price: $383,889 (-10%)
Median Price: $382,950 (-12%)
Average Days on Market: 88 (-19%)
Average Sale Price to List Price: 97% (+1%)
Average Original Price to List Price: 94% (+1%)
Average Absorption Rate: 43 (-4%)

On-Market Data:
Average Price: $542,617 (-7%)
Median Price: $463,000 (-1%)
Average Days on Market: 162 (+10%)
Number of Listings: 247 (-1%)
Months of Inventory: 5.7 (+2%)

Guide’s Opinion:
Prices have dropped significantly but days on market have fallen and SP to LP ratios are up. This is an indication that buyers are moving on properties whose prices have come down significantly. This matches up with our day to day experience. Buyers are seeking out undervalued properties in suburban areas. While city prices remain high the values are in the suburbs. 

Andover:

A nicely renovated 3 bedroom/2.5 bathroom on one acre for just over $500,000.

Beautiful 4 bedroom/2.5 bath colonial on a quiet street with 1 acre.

Framingham:

1700+ sqre foot 3bedroom/2.5bath plus garage and nice landscaping. Near Framingham Country Club.

Brand new construction with all the upgrades (not yet built) near parks and train.

Arlington:

Renovated 3 bedroom colonial with deck overlooking landscaped yard.

Incredible half acre WATERFRONT property in Arlington. Won’t last long.

Groton:

On almost 2 acres of land sits this 2200 square foot home with 4bedroom/2.5 bath incl a Master Suite listed for under $450,000!

The below properties are in relatively close location to each other which should make for a smooth open house trail.

1) Great in-town market entry home. 3bed/1.5bath, quick walk to town for $399,900. Sunday, 1-2:30

2) Single family with an in town location, 3bed/2.5bath plus a yard. $494,000. Sunday, 1-4pm.

3) Located on a culd-e-sac, this 4bed/2.5 bath sits on a little over half an acre and is a walk to the commuter train. $589,000. Sunday, 1pm-2:30p

4) Huge contemporary home near town of Anodover. 5bed/3.5 baths, .74 acres. $985,000. Sunday, 12-2pm

Let us know if you would like further property or market data analysis either before or after the OH.

**Note: There are other Open Houses in Andover, so feel free to use our site to search in other areas. We chose the above due to their proximity to each other. ***

Shoulda’ moved to Andover in 1634. You would have gotten three years’ immunity from taxes, levies and services, except military service (there’s always a catch ya know). Seriously though, Andover as we know it today is one of Massachusetts’ great towns. Beyond having deep historical roots it has the amenities that make modern home buyers smile.

Did you know that Harriet Beecher Stowe, ardent participant in the Underground Railroad and author of Uncle Tom’s Cabin, was a long time resident? Her home, now known as Stowe House is currently owned by one of the town’s other famous residents, Phillips Academy - Andover.

Here are 5 great Andover homes priced between $550,000 and $700,000.

92 Central Street - This four bedroom colonial sits on a half acre within walking distance to both downtown and to the train.

86 Red Spring Road - This three bedroom ranch literally sits on the Shawsheen River.

29 Karlton Circle - This four bedroom cape is the pick of the litter. It sits almost on top of Phillips Andover’s campus and is fully renovated.

70 Salem Street - This Greek Revival style house dates back to 1850 when local Andoverian Joseph Blunt called it home.

134 Elm Street - If you’ve got a monster family this six bedroom 5000 square foot colonial farmhouse might do the trick. Originally listed at $1,295,000!