Open Houses weekend January 17/18
70 degrees last weekend, 12 degrees this morning – but it will “warm” up later for these Open Houses (remember to check back tomorrow at 8:00 am for an updated list for Sunday):
Click on these links for details:
Marblehead Open Houses
Swampscott Open Houses
Salem Open Houses
Beverly Open Houses
Lynn Open Houses
And click Open Houses to search any other town in Massachusetts.
Andrew Oliver
Market Analyst | Team Harborside | teamharborside.com
REALTOR®
Sagan Harborside Sotheby’s International Realty
One Essex Street | Marblehead, MA 01945
m 617.834.8205
www.OliverReports.com
www.TeamHarborside.com
Andrew.Oliver@SothebysRealty.com
Sotheby’s International Realty® is a registered trademark licensed to Sotheby’s International Realty Affiliates LLC. Each Office Is Independently Owned and Operated
Salem 2019 Housing Market Summary
[Click here to download a pdf of this report.]
Single Family Homes (SFH)
After a 10.5% increase in 2018, the median price of SFHs sold in 2019 increased just 1.4% to a new high of $431,250. Sales increased to the second highest level recorded.
Condos
The median price of the condos increased just 1.5% in the first half (H1) but jumped 10.7% in H2 for a Year-on-Year gain of 6.2%.
Andrew Oliver
Market Analyst | Team Harborside | teamharborside.com
REALTOR®
Sagan Harborside Sotheby’s International Realty
One Essex Street | Marblehead, MA 01945
m 617.834.8205
www.OliverReports.com
www.TeamHarborside.com
Andrew.Oliver@SothebysRealty.com
Sotheby’s International Realty® is a registered trademark licensed to Sotheby’s International Realty Affiliates LLC. Each Office Is Independently Owned and Operated
New Listings week ending January 17
These are the most recent new listings:
Marblehead New Listings
Swampscott New Listings
Salem New Listings
Beverly New Listings
Lynn New Listings
and click Other Towns to search any town in Massachusetts.
Andrew Oliver
Market Analyst | Team Harborside | teamharborside.com
REALTOR®
Sagan Harborside Sotheby’s International Realty
One Essex Street | Marblehead, MA 01945
m 617.834.8205
www.OliverReports.com
www.TeamHarborside.com
Andrew.Oliver@SothebysRealty.com
Sotheby’s International Realty® is a registered trademark licensed to Sotheby’s International Realty Affiliates LLC. Each Office Is Independently Owned and Operated
Beverly 2019 Housing Market Summary
Single Family Homes (SFH)
After topping $500,000 in each of the first 3 Quarters, the median SFH price dropped back to $475,000 in Q4 as that Q saw a high percentage of sales under $500,000. Sales declined again and were the lowest since 2012.
Condos
The median condo price gained 13.6% to $325,000, but was lower than the 2017 level. Sales at Elliott Landing complicate comparisons from year to year.
Andrew Oliver
Market Analyst | Team Harborside | teamharborside.com
REALTOR®
Sagan Harborside Sotheby’s International Realty
One Essex Street | Marblehead, MA 01945
m 617.834.8205
www.OliverReports.com
www.TeamHarborside.com
Andrew.Oliver@SothebysRealty.com
Sotheby’s International Realty® is a registered trademark licensed to Sotheby’s International Realty Affiliates LLC. Each Office Is Independently Owned and Operated
New Listings mid-week January 15
Just a handful of New Listings:
Marblehead New Listings
Swampscott New Listings
Salem New Listings
Beverly New Listings
Lynn New Listings
And click here to check New Listings in any town in Massachusetts.
Andrew Oliver
Market Analyst | Team Harborside | teamharborside.com
REALTOR®
Sagan Harborside Sotheby’s International Realty
One Essex Street | Marblehead, MA 01945
m 617.834.8205
www.OliverReports.com
www.TeamHarborside.com
Andrew.Oliver@SothebysRealty.com
Sotheby’s International Realty® is a registered trademark licensed to Sotheby’s International Realty Affiliates LLC. Each Office Is Independently Owned and Operated
How is Swampscott’s 2020 Property Tax rate calculated?
Swampscott’ residential tax rate will drop from $15.20 in Fiscal Year 2019 to $14.30 in FY 2020 (and down from a high of $18.84 in FY 2013). The FY 2020 rate will be the lowest since 2008.
Commercial and industrial property is surcharged at 170%, as in FY 2019, resulting in a tax rate of $27.45, down from $28.83 in FY 2018 (and a high of $35.02 in FY 2013).
The average SFH tax bill has been flat in recent years, while the average commercial tax bill has increased:
Were a single tax rate to be enacted – meaning that residential and commercial property were taxed at the same rate – that rate would be $15.10 for FY 2020. The average SFH and condo tax bills would increase by 5.6% while the average commercial bill would drop 41.2%.
How is the rate calculated?
The method of calculating the tax rate is quite simple: take the $ amount of the previous year’s tax levy, add 2.5% for Proposition 2 1/2, and also add any new growth (such as new construction or a condo conversion). This figure is the new maximum tax levy. To this figure is added debt service – the Principal and Interest payable on the town’s debt.
Note that in recent years, Swampscott has not assessed the maximum allowed under this formula, a decision that has reduced the tax bill for residents. The average tax bill will decline by $23 in FY 2020, a third consecutive year of decline.
Here are the numbers for FY 2018, 2018 and 2020, remembering that the FY runs from July to June.
The Tax Levy calculation
The maximum $ amount that can be raised by the property tax will increase year by year. That is because of the formula: last year’s number plus 2.5% (Prop 2 1/2) plus new growth. In the table above you can see how the FY 2019 maximum tax levy of $50,034,670 becomes the base for FY 2020. Add $1,250,867 for Prop 2 1/2 and new growth of $425,000 to get the new figure of $51,710,537.
To this number is added the debt service – Principal and Interest on the town’s debt, much as homeowners pay P&I on their mortgage. Note that the actual tax levy was less than the maximum allowed by just over $2 million in FY 2018, by $3.4 million in FY 2019 and by $4.4 million in FY 2020. In other words, the amount to be raised through taxes was reduced by these amounts each year.
The Tax Rate
The actual tax rate depends upon the total Assessed Value of all property: residential, and commercial, industrial and personal (CIP). The tax rate is calculated by dividing the total dollar amount to be raised from each class by the Assessed Value of each class. Thus, the headline tax rate will also fluctuate depending upon the direction of Assessed Values.
In simplistic terms, if we assume that the $ amount to be raised increases by a little more than 2 1/2% each year, then if the average Assessed Value also increases by a little more than 2 1/2% the tax rate will be unchanged. If the increase in Assessed Values is less than 2 1/2%, then the tax rate will rise. And if the increase in Assessed Values is more than 2 1/2% then the tax rate will fall. In recent years Assessed Values have been increasing significantly more than 2 1/2% allowing for the tax rate to decline sharply.
Looking at the Swampscott residential tax rate, in FY 2019 it was $15.20, achieved by dividing $42.6 million raised from residential homeowners by the residential AV of $2.8 billion. In FY 2020 the amount to be raised from residential taxpayers is set to increase slightly to $42.9 million, but because the total residential AV increased by 7.2% to $3.0 billion, the headline tax rate has dropped sharply to just $14.30, the lowest figure since 2009.
Comment
The residential real estate market in Swampscott was stable in 2019 (and 2019 prices will be the basis for the FY 20201 tax rate), with the median price of Single Family Homes sold rising less than 1%, while the median price of the condos sold declined 2.5%. Sales in any year represent only a small percentage of the total stock so it does not follow that assessed values calculated by the town will mirror these movements.
As to the tax rate for FY 2021, that depends on a number of factors: the amount of debt service, how much of the maximum tax levy is assessed, and the shift to the CIP class being three of them. Absent some change in methodology, however, it does not seem likely that the residential tax rate will see a further decline in FY 2021.
From a residential real estate perspective, the substantial decline in the tax rate in recent years and the stability in tax bills are both very welcome news and are clearly encouraging more people to decide both to live and work in Swampscott.
Andrew Oliver
Market Analyst | Team Harborside | teamharborside.com
REALTOR®
Sagan Harborside Sotheby’s International Realty
One Essex Street | Marblehead, MA 01945
m 617.834.8205
www.OliverReports.com
www.TeamHarborside.com
Andrew.Oliver@SothebysRealty.com
Sotheby’s International Realty® is a registered trademark licensed to Sotheby’s International Realty Affiliates LLC. Each Office Is Independently Owned and Operated
Oon Houses Sunday January 12
A strange January weekend in prospect became even stranger in fact as the Titans throttled the Ravens and the temperature neared 70 degrees. What will today bring? How about a new home?
Visit these Open Houses to choose one.
Click on these links for details:
Marblehead Open Houses
Swampscott Open Houses
Salem Open Houses
Beverly Open Houses
Lynn Open Houses
and click Open Houses to check other Massachusetts towns.
Andrew Oliver
Market Analyst | Team Harborside | teamharborside.com
REALTOR®
Sagan Harborside Sotheby’s International Realty
One Essex Street | Marblehead, MA 01945
m 617.834.8205
www.OliverReports.com
www.TeamHarborside.com
Andrew.Oliver@SothebysRealty.com
Sotheby’s International Realty® is a registered trademark licensed to Sotheby’s International Realty Affiliates LLC. Each Office Is Independently Owned and Operated
Swampscott 2019 Housing Market Summary
[Click Swampscott 2019 to download a copy of this report.]
Single Family Homes
After three years of strong growth the median price of the SFHs sold in 2019 increased less than 1%. Sales remained well below the peak level of 2015.
Condos
The median price of the condos sold dropped 2.5% to $345,000. Excluding sales at the Avery development in both years the median price increased $4,000.
NB Numbers in bold represent record levels. Sources: MLSPIN, OliverReports.com
Andrew Oliver
Market Analyst | Team Harborside | teamharborside.com
REALTOR®
Sagan Harborside Sotheby’s International Realty
One Essex Street | Marblehead, MA 01945
m 617.834.8205
www.OliverReports.com
Andrew.Oliver@SothebysRealty.com
Sotheby’s International Realty® is a registered trademark licensed to Sotheby’s International Realty Affiliates LLC. Each Office Is Independently Owned and Operated
Open Houses weekend January 11/12
A strange January weekend: the Pats aren’t playing and the temperature will be 60 degrees.
Here are the Open Houses. Check back tomorrow at 8 a.m. for an updated list for Sunday.
Click on these links for details:
Marblehead Open Houses
Swampscott Open Houses
Salem Open Houses
Beverly Open Houses
Lynn Open Houses
and click Open Houses to check other Massachusetts towns.
Andrew Oliver
Market Analyst | Team Harborside | teamharborside.com
REALTOR®
Sagan Harborside Sotheby’s International Realty
One Essex Street | Marblehead, MA 01945
m 617.834.8205
www.OliverReports.com
www.TeamHarborside.com
Andrew.Oliver@SothebysRealty.com
Sotheby’s International Realty® is a registered trademark licensed to Sotheby’s International Realty Affiliates LLC. Each Office Is Independently Owned and Operated
Marblehead 2019 Housing Market Summary
[Click Marblehead 2019 report to download a copy of this report.]
Single Family Homes (SFH)
The median price increased 4.1%, breaking $700,000 for the first time. Sales recovered from last year’s dip and were in line with the average of recent years.
Condos
The median price increased 7.8% to just under $400,000, while sales were in line with the average of recent years.
NB Numbers in bold represent record levels. Sources: MLSPIN, OliverReports.com
Andrew Oliver
Market Analyst | Team Harborside | teamharborside.com
REALTOR®
Sagan Harborside Sotheby’s International Realty
One Essex Street | Marblehead, MA 01945
m 617.834.8205
www.OliverReports.com
Andrew.Oliver@SothebysRealty.com
Sotheby’s International Realty® is a registered trademark licensed to Sotheby’s International Realty Affiliates LLC. Each Office Is Independently Owned and Operated
New Listings week ending January 10
New Listings are starting to trickle in:
Marblehead New Listings
Swampscott New Listings
Salem New Listings
Beverly New Listings
Lynn New Listings
and click Other Towns to search a Massachusetts town not shown above.
Andrew Oliver
Market Analyst | Team Harborside | teamharborside.com
REALTOR®
Sagan Harborside Sotheby’s International Realty
One Essex Street | Marblehead, MA 01945
m 617.834.8205
www.OliverReports.com
www.TeamHarborside.com
Andrew.Oliver@SothebysRealty.com
Sotheby’s International Realty® is a registered trademark licensed to Sotheby’s International Realty Affiliates LLC. Each Office Is Independently Owned and Operated
New Listings mid-week January 8
Here are the latest New Listings:
Click on the links below for details:
Marblehead New Listings
Swampscott New Listings
Salem New Listings
Beverly New Listings
Lynn New Listings
and click Search to check New Listings in other towns in Massachusetts.
Andrew Oliver
Market Analyst | Team Harborside | teamharborside.com
REALTOR®
Sagan Harborside Sotheby’s International Realty
One Essex Street | Marblehead, MA 01945
m 617.834.8205
www.OliverReports.com
www.TeamHarborside.com
Andrew.Oliver@SothebysRealty.com
Sotheby’s International Realty® is a registered trademark licensed to Sotheby’s International Realty Affiliates LLC. Each Office Is Independently Owned and Operated
Essex County 2020 Commercial property tax rates: Town by Town guide
While most of us look at residential tax rates, fewer are concerned with commercial tax rates. Yet a healthy commercial business environment can contribute significantly to the attractiveness of a town. The map below shows commercial rates in each of Essex County’s 34 cities and towns, followed by a table comparing residential and commercial rates.
(Click here to download a copy of this map and here to download the table)
There is a bigger variation in commercial rates than in residential rates
The lowest rate for both residential and commercial rates is Rockport’s $10.10, but while the highest residential rate is Wenham’s $18.94, there are 11 towns with commercial rates over $20, with the highest being $28.42 in Salem. 20 towns set the same rate for both residential and commercial, while in 3 towns the commercial rate is more than double the residential one.
Why do some towns have different residential and commercial tax rates?
Cities and towns have the ability to increase the percentage of the total tax bill paid by commercial (and industrial and personal) property owners. The percentage of the value of property classified as commercial varies enormously from town to town.
In Marblehead, for example, where residential property is 95% of the total, a 50% tax shift to commercial would increase the average commercial tax bill from $7,003 to $10,508, while reducing the average residential tax bill by only $189.
Towns with a higher percentage of commercial property are more likely to shift an increased share of the tax bill to commercial owners.
Andrew Oliver
Market Analyst | Team Harborside | teamharborside.com
REALTOR®
Sagan Harborside Sotheby’s International Realty
One Essex Street | Marblehead, MA 01945
m 617.834.8205
www.OliverReports.com
www.TeamHarborside.com
Andrew.Oliver@SothebysRealty.com
Sotheby’s International Realty® is a registered trademark licensed to Sotheby’s International Realty Affiliates LLC. Each Office Is Independently Owned and Operated
Essex County 2020 property tax rates: a Town by Town guide
Property tax rates for FY 2020 for all 34 cities and towns in Essex County have been announced. Below is a map (which you can download by clicking here), so that you can compare tax rates in neighboring towns, followed by the tax rates for each town the last five years. The first table shows the tax rates in alphabetical order, while the second lists them from low to high.
Tax rates for each town
Alphabetically (download a copy of this table by clicking here.
From lowest to highest based on 2020 rates (download a copy of this table by clicking here)
Median and Average Tax Rates
The median tax rate for 2020 is $13.68, down from $14.02 in 2018, while the average tax rate has dropped from $13.95 to $13.80. The highest taxed town, Wenham, has a rate 38% higher than the County median, while the lowest, Rockport, is 26% below the median. Or put another way, the highest tax rate in Essex County is 88% higher than the lowest.
How property tax rates are calculated
There are two main points to understand:
The dollar amount raised by property taxes is based on a simple formula: the dollar levy for the previous year plus 2 1/2% (Prop 2 1/2), plus any new growth (e.g. new construction), plus debt service.
The tax rate is then calculated by dividing the dollar amount to be raised by the Assessed Value of all property. For FY 2020 (July 2019-June 2020) Assessed Values are based upon sales during 2018. Sales in 2019 will be used for calculating the FY 2021 tax rates.
20 of Essex County’s cities and towns choose a single tax rate, whereby residential and commercial properties are taxed at the same rate. The other 14 cities and towns choose a split tax rate whereby commercial properties are taxed at a higher rate – in some cases a much higher rate.
A separate report on commercial tax rates can be read by clicking here.
For a walk through the tax calculation read How is Marblehead’s 2020 Tax Rate calculated?
Tax rate changes in 2020
Of the 34 cities and towns in Essex County, 22 have announced decreases in their 2020 residential tax rate while 12 have had increases approved. Decreases of 5% or more were seen in Lawrence, Amesbury, Lynn, Swampscott, Merrimac and Methuen, while 5% or larger increases were recorded in Wenham, Essex and Rowley. Bear in mind that a major determinant of the change in tax rates is the movement in Assessed Values. Thus, in a time of rising home prices, a general expectation is that tax rates should be flat to down.
Tax Rates of Neighboring Towns
Where taxes become interesting is when one can compare tax rates in neighboring towns. Many people, especially those moving to the area, whether from Boston or elsewhere, are willing to consider more than one town.There are many factors in the decision about where to live, but tax rates can be a significant influence on the decision, and may become more so with the new limitation on the deduction of property taxes from Federal taxation. Some argue that lower property values offset higher taxes. Frequently, however, residents of highly taxed towns cite taxes as a reason for wanting to move.
Andrew Oliver
Market Analyst | Team Harborside | teamharborside.com
REALTOR®
Sagan Harborside Sotheby’s International Realty
One Essex Street | Marblehead, MA 01945
m 617.834.8205
www.OliverReports.com
www.TeamHarborside.com
Andrew.Oliver@SothebysRealty.com
Sotheby’s International Realty® is a registered trademark licensed to Sotheby’s International Realty Affiliates LLC. Each Office Is Independently Owned and Operated
Open Houses Sunday January 5
No Super Bowl this year. Perhaps one of these properties will make up for the disappointment:
Marblehead Open Houses
Swampscott Open Houses
Salem Open Houses
Beverly Open Houses
Lynn Open Houses
and click Other Towns to search towns not shown above.
Andrew Oliver
Market Analyst | Team Harborside | teamharborside.com
REALTOR®
Sagan Harborside Sotheby’s International Realty
One Essex Street | Marblehead, MA 01945
m 617.834.8205
www.OliverReports.com
www.TeamHarborside.com
Andrew.Oliver@SothebysRealty.com
Sotheby’s International Realty® is a registered trademark licensed to Sotheby’s International Realty Affiliates LLC. Each Office Is Independently Owned and Operated
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