Housing inventory remains tight at mid year
While there are about 10% more Single Family Homes (SFHs) currently available for sale than there were a year ago, the inventory as measured by the industry standard of months of supply remains quite tight at 4.4 months in Essex County as a whole, compared with 4.1 months a year ago. A market is generally regarded as being in equilibrium between buyers and sellers when there is 6 months of supply.
The table below shows the wide range of supply between 3 months or less in Beverly, Lynn, Middleton and Peabody, all the way to 12 months in Manchester and Wenham.
Source: MLS, Oliver Reports
The condo market has actually tightened since last year, with fewer condos for sale and a shrinkage in the months of supply in Essex County overall from 4.6 a year ago to just 3.7 today.
Source: MLS, Oliver Reports
The next pair of tables show the price range of SFHs and condos currently for sale. The only declines (and very small ones at that) in SFHs have occurred at the bottom and top ends, while with condos the only increases have also come at the bottom and top ends.
Source: MLS, Oliver Reports
Sometimes I find that an analysis of the numbers confirms what I am seeing in the market, or more interestingly tells me there is a trend that I had not noticed.
I had already spotted that in Marblehead, where the median condo price in the first half of the year was a record $367,500, 15 of the 22 condos currently for sale are priced under $300,000. While the condo market in Marblehead is small, I find myself wondering whether we are seeing more units from the older condo conversions coming to market now as buyers return and borrowing is easier.
I shall come back to this another day.
If you – or somebody you know – are considering buying or selling a home and have questions about the market and/or current home prices, feel free to contact me on 617.834.8205 or [email protected].
Andrew Oliver is a Realtor with Harborside Sotheby’s International Realty
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