Salem Q3 2022 Report: Median Single Family price breaks through $600,000

· by · in

The median price of the Single Family Homes (SFH) sold in Salem reached $600,000 or more in each of the first three quarters of 2022, and increased 10% to $617,500 in the first 9 months (YTD Q3) The median condo price increased 7% YTD Q3 to $450,000.

Single Family Homes (SFH)
The median price of the SFHs sold in Salem in the first 9 months of 2022 (YTD Q3 2022) increased 10% to $617,500 on sales exactly in line with the 3-year average.

As the percentage of sales over $600,000 increased from 39% YTD in 2021 to 58% YTD in 2022, so the median price moved from under to over $600,000. Sales over $1 million YTD increased from 5 to 11.

83% of SFH sales took place over list price (vs 81% in 2021), with 33% of all sales (compared with 39% in 2021) at 110% or more of list.

Condos
The median price of the Condos sold in Salem YTD 2022 increased 7% to $450,000 on sales in line with the 2021 number. 69% of sales YTD in 2022 were over list (vs 68% YTD 2021) with 17% at 110% or more (vs 15%).

As the percentage of sales over $400,000 increased from 60% YTD in 2021 to 69% in 2022, so the median price moved futher above $400,000.

Inventory
A market is traditionally deemed to be in equilibrium between buyers and sellers when there is enough supply to meet 6 months of demand (I actually think that number has been reduced by the speed with which buyers now become aware of new listings and are able to view them online, but 6 months is still the most quoted figure).
Here are the numbers for Essex County SF homes as of October 1:

Still a huge imbalance between demand and supply.

Has the market slowed?
Yes. But slowed to a still strong level.
The first chart shows that the percentage of sales that closed in July that went under contract in 15 days or less was 90%, but this has dropped since then to 60%:

The percentage of sales taking place over list price has also dropped, from 71% to 56%:

Mortgage rates
The big feature of 2022 has been the huge jump in mortgage rates. The 30-year Fixed Rate Mortgage (FRM) ended 2021 at 3.1%, rose to 4.7% at the end of Q1, to 5.7% aty the end of Q2, to 6.7% at the end of Q3 and then to the current 6.9%.

Comment
Mortgage rates have more than doubled, the stock market has swooned, there is increasing talk of recession, etc, etc. And yet, there is no sign that the imbalance between buyers and sellers in Essex County has changed in the slightest.
The spike in mortgage rates is the latest factor in keeping supply in check, as homeowners are reluctant to give up their cheap mortgage rates and pay current rates if they buy a new home.
While higher mortgage rates and high prices are undoubtedly impacting the real estate market nationally, especially for first-time homebuyers, Salem continues to see strong demand.

And these recent articles:
Economic and mortgage commentary
Mortgage Rates peaked? I spoke too soon
Recession? Yes, no, maybe….
Federal Reserve tries to rewrite history
Has Inflation Peaked?
Are we already in a Recession?
Federal Reserve in Fantasyland: Implications for Housing Market
Time to Consider an Adjustable Rate Mortgage
How Marblehead’s 2022 Property Tax Rate is calculated
Essex County 2022 Property Tax Rates: Town by Town guide

Market Reports
Marblehead Q3 2022 Report: Median Price tops $1 million
Swampscott Q3 2022 Report: Median Price hits $800,000
Marblehead house sells for 35% above list price
Summer 2022 Market Review
How quickly are houses selling?
Have Home Sales slowed?

Other
Free Property and Mortgage Fraud alert notification for homeowners
Guide to Buying and Selling in Southwest Florida

If you – or somebody you know – are considering buying or selling a home and have questions about the market and/or current home prices, please contact me on 617.834.8205 or [email protected].

Andrew Oliver, M.B.E.,M.B.A.
Market Analyst | Team Harborside | teamharborside.com
REALTOR®

m 617.834.8205

www.OliverReportsMA.com

“If you’re interested in Marblehead, you have to visit the blog of Mr. Andrew Oliver, author and curator of OliverReportsMA.com. He’s assembled the most comprehensive analysis of Essex County we know of with market data and trends going back decades. It’s a great starting point for those looking in the towns of Marblehead, Salem, Beverly, Lynn and Swampscott.”
__________________

Andrew Oliver, M.B.E., M.B.A.
Real Estate Advisor
[email protected]
www.TheFeinsGroup.com
www.OliverReportsFL.com

————
Compass
800 Laurel Oak Drive, Suite 400, Naples, FL 34108

 

Source: MLSPIN, OliverReportsMA.com