The real estate market in Andover, MA has been buzzing with activity, and if you’ve been keeping an eye on home prices, you’ve likely noticed the upward trend. Whether you’re a potential buyer, seller, or investor, understanding what’s fueling these price shifts can help you make informed decisions. So, what exactly is driving home prices in Andover right now? Let’s break it down.

1. Strong Buyer Demand

One of the biggest factors influencing home prices in Andover is demand. Families, professionals, and retirees alike are drawn to Andover for its top-rated schools, charming neighborhoods, and convenient location near Boston. With more buyers than available homes, competition naturally drives prices up—especially for move-in-ready properties.

2. Limited Housing Inventory

While demand is high, the number of homes for sale remains relatively low. This tight housing inventory means buyers often find themselves in bidding wars, pushing sale prices above asking. Sellers benefit from this scarcity, but buyers may need to act quickly and strategically to secure a property.

3. Location Advantage

Andover’s location is another key factor. Positioned just 25 miles north of Boston and near major highways like I-93 and I-495, the town offers both accessibility and a suburban lifestyle. Its blend of small-town charm and proximity to employment hubs makes Andover highly desirable, directly impacting home values.

4. Community Appeal and Amenities

Andover’s reputation as a family-friendly community with rich history and green spaces adds to its appeal. From the Phillips Academy campus to Harold Parker State Forest, the town offers lifestyle perks that buyers are willing to pay a premium for. This community appeal keeps demand steady and prices elevated.

5. Interest Rates and Market Conditions

While mortgage rates have seen fluctuations, they remain a crucial factor in buyer affordability. When rates dip, more buyers enter the market, creating added competition. Even with slightly higher rates compared to recent years, Andover’s market has remained resilient, with well-priced homes selling quickly.

6. Renovations and Modern Features

Another contributor to higher prices is the growing trend of renovated homes with modern upgrades. Buyers are increasingly seeking properties with updated kitchens, energy-efficient systems, and open layouts. Homes that meet these expectations often sell at a premium compared to older, less updated properties.

What This Means for Buyers and Sellers

For buyers, entering the Andover housing market means preparing for competition. Getting pre-approved, working with a local agent, and being ready to make strong offers can make all the difference. For sellers, this is a favorable time to list—demand remains high, and the market is leaning in your favor.

So, what’s driving home prices in Andover right now? It’s a combination of high demand, low inventory, community appeal, and strong location advantages. If you’re considering buying or selling in Andover, understanding these factors will help you navigate the market with confidence.

Matt Witte strives to be the best realtor in Andover MA.

Any questions about real estate, reach out to Matt Witte, Andover Realtor MA