A great time to sell a Marblehead condo

Over the last several years the condo market in Marblehead, limited as it is, has tended to see over supply. At many times there have been 30-60 condos for sale. But not now. There are just 10 available, low even for this time of year.

Here’s a table for 2013 data:

Source: MLS, Oliver Reports

It is possible 1 or 2 of the pending sales will close by year end. What is significant is that after a very quiet first half (12 sales) activity really picked up with 32 sales already in the second half of the year.

Here’s another thing. Condo buyers often take out an Adjustable Rate Mortgage, most commonly a 5/1 where the rate is fixed for the first 5 years, often encompassing the time a young person or couple will live in the condo. And despite higher mortgage rates generally since the summer, the rate on a 5/1 is still about 1% cheaper than the 30 year.

Here are  reasons to think about selling now:

1. Supply and demand – very little supply, good demand
2. With the Federal Reserve finally starting to cut back on its bond purchases, and with new rules increasing the fees on mortgages in 2014, rates are almost certainly going up in 2014. ( I know that’s been said for a couple of years, but it happened in 2013 and forecasts are for a further increase in 2014).

If you are considering buying or selling a home and have questions about the market and/or current home prices, feel free to contact me on 781.631.1223 or andrew@HarborsideRealty.com.

Andrew Oliver is a Realtor with Harborside Realty in Marblehead.