Beverly 2015 Condo Market Review
This Beverly 2015 Condo Market review shows that sales jumped sharply in 2015 while the median price held steady.
Sales
Sales jumped 33% last year and were double the lows of 2009-2011, although still well below the highs of 2004 and 2007.
Source: MLS, Oliver Reports
Median Price
Prices were steady in 2015 and are still 8% below the 2005 peak.
Q2 and Q3 normally show the highest prices of the year.
Source: MLS, Oliver Reports
ASR*
One way I measure prices is by the ratio (ASR) of Assessed Value (AV) to Sales Price (SP). The ASR is the AV divided by the SP: if the SP is rising (prices going up), the ASR will fall. The ASR of Beverly condos has been falling sharply since 2012, indicating rising prices. In 2015, the median condo sold at a premium of 18% (100/85.0 – 1) above Assessed Value.
Source: MLS, Oliver Reports
Summary
2015 saw a strong jump in condo sales with prices holding steady, while the median condo sold at a premium of 18% to Assessed Value.
The Massachusetts economy is strong and GE’s move to Boston can only help. With mortgage rates close to record lows, affordability remains high. Thus the outlook is for another active year in the condo market in Beverly.
*Properties selling above their AV will have an ASR below 100%. What this means is that in a period of rising prices the ASR is likely to be falling. So what we, as homeowners, want is an ASR below 100% and falling.
Remember that AVs are a lagging indicator: the tax bills that have just been sent out for FY2016 are based on actual sales in 2014. Thus the 2015 sales data, reported in this review, will be the basis for FY2017 assessments.
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 Andrew.Oliver@SothebysRealty.com.
Read Which broker should I choose to sell my home?
Andrew Oliver is a Realtor with Harborside Sotheby’s International Realty. Each Office Is Independently Owned and Operated
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