Home Buying

In Western Suburbs, Fierce Competition For Homes Under $1 Million

There are more homes on the market under $1 million now than there were last spring in Wellesley, Needham.

In Weston, just 2.8 percent of homes on the market are listed for less than a million dollars. Essdras M Suarez/ Globe Staff

By Scott Van Voorhis

April 10, 2015

2 minutes to read

Home buyers looking to crack some of the top western suburbs – and stay below $1 million — may actually have a shot this spring.

The number of homes for sale under seven figures in Wellesley and Needham, while relatively small, is significantly larger than it was last spring, said Elaine Bannigan, owner of Pinnacle Residential Properties in Wellesley.

That means some buyers looking in that price range have a fighting chance in two of the most expensive towns in the state, she said, provided they act fast and ante up.

“Under the million dollar price range, the best homes go to people who are bold and decisive and step right up,’’ she said.

The Numbers Tell the Story

There were just three homes under $1 million on the market in Wellesley during the first week of April last year, Bannigan said.

This year, there are 12 out of a total of 68 listings.

In Needham, the ratio is even better, with just over half the homes on the market under $1 million, or 33 out of 63, Bannigan noted.

Last year in early April, 75 percent of the homes on the market in Needham were listed for more than a million, she said.

A big exception is neighboring Weston, where just 2.8 percent of homes on the market are listed for less than a million dollars. That’s just four out of 71 homes on the market.

What You Get

In general, the $800,000 to $1 million range in Wellesley will get house in half decent shape. That means three bedrooms and perhaps two and a half baths on a quarter acre lot, Bannigan noted.

Under $800,000, and you are more likely to get homes on small lots that need some updating, she said.

In Wellesley, a 1,657 square foot, three-bedroom, two-bath home is listed for just under $600,000 on Cedar Street. In Needham, $735,000 will get you a four bed, two and half bath home with 1,624 square feet, according to Redfin.

In fact, if you are hunting for a home under a million in a town like Wellesley or Needham, the lot – and whether it is large enough for you to expand someday – is a key consideration, said Ned Mahoney, an agent with Keller Williams in Needham.

“They are not making land anymore,’’ he said. “Look at a house that gives you some potential to expand down the road.’’

Same Day Offers

However, snagging a house below a million in an elite town is no easy prospect. There are always many more buyers looking than homes to choose from, Bannigan said.

Deals went out with the Great Recession and buyers must act fast – even the same day they see a new listing – if they want to beat out the competition. Forget about waiting for an open house — if you want a shot at it, set up a showing that day, she said.

Not only that, but you had also better also be ready to make and offer right then and there – and have money to back it up.

“Anything under a million dollars is flying off the shelf,’’ Bannigan said.