As of January 2025, Andover, Massachusetts, continues to exhibit a dynamic real estate market characterized by rising property values and significant development projects. The town's strategic planning and ongoing investments suggest a promising future for both residents and investors.

Current Market Trends

In January 2025, the median listing home price in Andover reached $1.3 million, reflecting a 7.5% year-over-year increase. The median price per square foot stood at $406. Similarly, Zillow reported an average home value of $934,588, marking a 4.9% rise over the past year. These figures indicate a robust demand for housing in the area.

However, Redfin's data presents a slight contrast, showing a 1.5% decrease in home prices compared to the previous year, with a median price of $749,000. Homes typically sold after 21 days on the market, an improvement from 26 days the prior year. This discrepancy may be attributed to variations in data collection methods or market segments analyzed.

Development Initiatives Shaping Andover's Future

Andover's commitment to growth is evident through several key development projects:

  • Town Yard Redevelopment: Approved in August 2024, this 248,788-square-foot mixed-use development will feature 136 residential units, commercial spaces, a 30,000-square-foot roof deck, a community building, and a dog park.

  • Life Science Redevelopment at 600 Federal Street: Completed in early 2024, this project transformed part of Andover Technology Park into a life sciences hub, leasing 42,000 square feet to industry tenants.

  • 30 Burtt Road Expansion: Permitted in 2024, this project involves a 201,684-square-foot addition designated for warehouse, manufacturing, laboratory, and office use, enhancing the town's industrial and commercial capacity.

Strategic Planning and Economic Development

The Andover Comprehensive Plan 2023 outlines a vision for the town's growth over the next decade, focusing on land use, economic development, housing, open space, transportation, cultural and historic resources, and municipal services.

This strategic approach aims to balance development with community needs, ensuring sustainable growth.

Regional Influences

The broader Massachusetts real estate market is expected to favor buyers in the latter half of 2025, with home prices rising slowly and an increase in available homes. Mortgage rates around 5.84% enhance buyers' purchasing power.

Additionally, Boston's high housing costs and potential office-to-housing conversions may influence suburban markets like Andover, as buyers seek more affordable options.

Andover's real estate market is poised for continued growth, driven by strategic development projects, comprehensive planning, and favorable market conditions. For prospective buyers and investors, the town offers a blend of upscale residential options and expanding commercial opportunities, making it a compelling choice in the Massachusetts real estate landscape.

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