Westwood Real Estate Market: The 2026 Forecast
Updated for Q1 2026 | Historical Trends & Future Predictions
Westwood, MA, has long been a sought-after location for homebuyers due to its proximity to Boston and strong school system. But is now the right time to buy or sell? Understanding the market "temperature" is key to making a strategic decision.
The Westwood Market Barometer
CURRENT STATUS: SELLER'S MARKET
Inventory is tight (-5.7%). Well-priced homes are seeing multiple offers.
| Metric | Current Stat (2025/26) | What It Means for You |
|---|---|---|
| Median Home Price | $1,144,428 (+4.7% Annual Growth) |
Steady Appreciation. Despite rate hikes, values are holding. Low-ball offers are unlikely to succeed. |
| Days on Market | 20 Days (Up from 15 Days) |
Slight Cooling. Buyers have a small window to think, but turnkey homes still fly off the shelf. |
| Inventory | 33 Active Listings (-5.7% Decrease) |
High Competition. With fewer options, buyers must be pre-approved and ready to strike immediately. |
Historical Overview of Westwood's Real Estate Market
Long-Term Appreciation
Westwood's real estate market has shown strong appreciation over the past two decades. Between 2000 and the third quarter of 2024, home values in Westwood increased by 184.24%, reflecting an average annual growth rate of 4.31%. This consistent upward trajectory indicates the town’s desirability and resilience in varying economic conditions. Even during economic downturns, the market has demonstrated stability, making it a relatively secure investment for homeowners and investors alike.
Recent Trends
The past year has seen notable shifts in home prices. Between the third quarter of 2023 and the third quarter of 2024, the market appreciated by 11.05%. However, in December 2024, the median home price stood at $1,007,500, representing a 32.3% decline compared to the previous year. At the same time, the average home value reached $1,144,428, marking a 4.7% annual increase. These figures highlight market fluctuations influenced by economic conditions and buyer demand.
Key Factors Influencing Historical Trends
Economic Conditions
The real estate market in Westwood has been closely tied to broader economic trends, including employment rates, income levels, and local business growth. Economic stability generally supports strong housing demand and price appreciation. When employment opportunities increase in the Greater Boston area, demand for homes in surrounding suburbs like Westwood tends to rise as well.
Interest Rates
Mortgage rate fluctuations have played a significant role in buyer purchasing power. Periods of lower interest rates have spurred homebuying activity, while rate increases have tempered demand. Buyers looking to enter the market often keep a close eye on interest rate trends, as even a small percentage change can impact affordability and monthly mortgage costs.
Population Growth and Demographics
Changes in population size and demographics have influenced Westwood’s housing needs. An influx of professionals and families seeking suburban living has driven demand, particularly for single-family homes. The town's reputation for excellent schools and a strong sense of community has made it a preferred location for those looking to settle long-term.
Infrastructure and Development
The expansion of transportation networks, school investments, and commercial developments have contributed to property value increases. Proximity to major highways and public transit options continues to make Westwood attractive to commuters. Additionally, new business developments and retail centers have enhanced the town's appeal, making it a convenient place to live.
Current Market Analysis
Inventory Levels
As of January 2025, Westwood had 33 homes listed for sale, a 5.7% decrease from December 2024. Limited inventory has supported home prices despite recent fluctuations. The reduction in available listings has created a competitive market for buyers, often resulting in multiple offers on well-priced properties.
Sales Activity
In December 2024, 12 homes were sold, representing a 200% increase from the previous year. The rise in completed transactions suggests steady demand, even as market conditions shift. Buyers who have been waiting for price adjustments are beginning to return, leading to an increase in overall sales activity.
Future Market Predictions
Expert Forecasts
Analysts expect Westwood's real estate market to continue its long-term growth. Demand for housing in the Greater Boston area, coupled with Westwood’s reputation for quality living, should drive sustained appreciation. Buyers looking for stability in an evolving market may find Westwood to be a reliable investment.
Tips for Buyers and Sellers
For Buyers
- Secure mortgage pre-approval to strengthen offers in a competitive market.
- Research neighborhood trends and pricing to make informed decisions.
- Work with a local real estate expert for insights into available properties and market conditions.
For Sellers
- Price homes competitively based on recent comparable sales.
- Stage homes effectively to appeal to buyers.
- Utilize professional marketing strategies to reach a broad audience.
About Elena Price
Elena Price is the top-selling broker in Westwood by volume, a position she has maintained since 2002. With over $1 billion in sales, she understands the nuances of this market better than anyone. Contact Elena Price today for a private consultation.
