Median Price and Sales
The median price of the Single Family homes sold in Marblehead increased 31% from $718,500 in 2019 to $938,0000 in 2022. Sales were steady from 2019 to 2021, but dropped in 2022, and again YTD in 2023. The YTD 2023 median price is $964,750, up 4% from 2022 YTD.
The median price of the Condos sold increased by 38% from $398,900 in 2019 to $550,000 in 2022, with sales following a similar pattern to that for SFs. Q3 2023 saw 5 of the 7 sales YTD over $750,000 and, with only 11 sales in the Quarter, this drove up the median price. By contrast, 4 of the 6 sales under $400,000 took place in Q1, driving down the median price. YTD the median price is $575,000, more in line with the 2022 number.
Just as in prior periods of housing market strength, the market in Marblehead saw a steady – rather than spectacular – increase in prices during the boom days of asset price increases which were fueled by cheap credit, during and after the pandemic.
Similarly, Marblehead did not see the correction experienced by other parts of the country in the second half of 2022, as interest rates rose sharply.
The reasons are as old as the town itself: Marblehead is a great place to live and bring up children, which is why people stay in their houses longer than they do elsewhere. Add to that, WFH (Work from Home), making the commute to Boston less of an issue.
The more than doubling of mortgage rates has also been a major factor in encouraging people to stay in their existing homes, further reducing the supply of homes for sale.
Finally, fluctuations in median prices can and do occur when the numbers are small, which is why the trend is more important than the exact numbers.
This report analyses the Median Price and Sales per quarter since 2019, along with the Sales by Price point, Price per Sq.Ft., and the Days properties were on the market before receiving an offer (DTO).
The chart and table below show how the percentage of sales (of SFHs and Condos) dropped in the last few months of 2022 and early months of 2023, befre recovering strongly from the spring of 2023 onwards.
Note that the actual numbers in some months are quite small which can lead to fluctuations – but the overall message is clear: most properties continue to sell over list price.
While $1M signified luxury property a short while ago, it’s now 8% of the nation’s housing stock – but a large percentage of those homes are still in Pacific Coast states..
The share of homes worth seven figures is on an upswing after dipping to a 12-month low (7.3%) in February because prices are rising on a year-over-year basis after a decline early in the year.
Overall, the median U.S. home-sale price rose 3% in July, the biggest increase since last November, according to Redfin, with luxury home prices rising even faster – up 4.6% year over year to $1.2 million in the second quarter.
Elevated mortgage rates discourage potential home sellers, who are staying put to keep their relatively low mortgage rates. As a result, inventory dropped so low that buyers still in the market are competing for those few homes that are for sale. That’s driving up home prices and pushing many of those listings above the million-dollar mark.
“The supply shortage is making many listings feel hot,” said Redfin Economics Research Lead Chen Zhao. “In most of the country, expensive properties that are in good condition and priced fairly are attracting buyers and in some cases bidding wars, mostly because for-sale signs are few and far between right now.”
The share of homes worth seven figures has doubled since before the pandemic. In June 2019, just over 4% of homes were valued at $1 million or more.
East Coast metros gain most $1 million-plus homes
Over one-quarter (25.8%) of homes in the Bridgeport, CT metro – which has many popular New York City suburbs – are worth at least $1 million, up from 23.1% a year ago, the biggest increase of the metros analyzed. It’s followed by Boston, where the share increased from 20.3% to 21.5%, and Newark, N.J. (8.7% to 9.7%). (more…)
One of the features of the housing market boom of 2020-2022 was the very high number of sales above list price, an indication that there were multiple offers resulting in bidding wars.
And a logical consequence of the market returning to more normal conditions would be to expect a decline in bidding wars, leading to fewer sales taking place above list price.
Has this actually happened?
Let’s look at the sales in last 12 months in Marblehead, Swampscott and Salem. Here is the chart: (more…)
The centerpiece of the Lenten Choral Concert will be the “Requiem in D” by W.A. Mozart, universally recognized as among the most poignant and breathtakingly beautiful works of the sacred choral repertoire.
Maria van Kalken, director of the Old North Festival Chorus and minister of music at Old North Church, extends a warm and enthusiastic welcome to all singers to join the chorus for its annual Lenten Choral Concert, which will be the first time the chorus has performed with full orchestra in person since March 2019.
Celebrating her 34th season as director of the Festival Chorus, van Kalken has planned a memorable choral concert to take place at 7:30 p.m. Sunday, April 2, Palm Sunday(more…)
The median price of Single Family Homes (SFH) sold in 2022 increased 10.4% to $938,000, and reached exactly $1 million in the second half of the year. Sales, reflecting a number of headwinds – amongst them, reduced inventory and a doubling of mortgage rates – dropped below 200 for the first time since 2011.
The share of sales over $1 million increased from 34% in 2021 to 46% in 2022, driving the median price for the year to over $900,000.
A small sample for January, but two observations:
1. the number of properties selling above list price was lower overall, and the amount over list decreased – there were no sales at 110% or more.
2. 4 of the properties had price cuts – and all 4 sold for less than their reduced price.
The 2023 Property Tax rate of $10.00, for both residential and commercial property, has been approved by the Massachusetts Department of Revenue.This compares with a rate of $10.52 for 2022 but, with assessments climbing, tax bills will -as usual – be going up.
I will publish my usual breakdown, showing how the tax rate is calculated, next week.
November sales in Marblehead and Swampscott continue to show strength.
10 of 19 SFH sales in November were at or over List price, with 2 sales at 23% and 32% over list. Just 1 of the 4 Condo sales was over List.
6 of 10 SFH sales in October were at or over List price (5 over the Original List Price), while 5 of the 6 Condo sales were at or above List.
While sales continue to be strong – and often strongly above list price – it is interesting to note that 8 of the 14 SFHs currently available for sale in Marblehead have had price reductions, while 4 of the 9 in Swampscott have also seen price cuts – or “adjustments” or “improvements” as we like to call them.
Note also that in November, all but 1 of the sales where the price had been reduced subsequently took place below the reduced price.
The sample is small, but the implication is clear: over-pricing in this market leads to a lower sale price.