One more Marblehead Open House
Missing from the earlier list was 8 Pond Street which has an Open House today from 11:00-2:00.
Shingle style house on Marblehead’s Unknown Oceanfront
A man came to see 11 Crown Way a while back and commented that he had driven up and down Atlantic Avenue for years and had no idea that there were oceanfront houses at the end of the streets between Preston Beach and Beach Street.
There are a lot of small streets that lead to the water and have 1 or 2 or maybe 3 or 4 houses sitting directly on the ocean at the end. And for the most part these houses sit on the rocky Atlantic coast and are high enough that flooding is not a concern, while many of them face South, have great views of Ram Island and down the coastline, and are well protected from the nor’easters that can impact more exposed areas.
In 2014 there were 29 houses with an Assessed Value of $2 million or more in this area and by this year that number had jumped to 45.This area does indeed contain Marblehead’s Unknown Oceanfront properties.
11 Crown Way, which has breathtaking views all the way down to the South Shore, is a gracious, restored (1998-2006), 1870s oceanfront home. The open floor plan offers an easy flow for entertaining. The house sits on a private beach, high above the Atlantic, in a wonderfully protected location (no flood insurance required.) VIEWS and VIEWS and VIEWS.
Click 11 Crown Way for details of the property. And here’s a link to the Video and to the sky over the ocean at sunset.
The Carriage House is believed to have been a stop on the Underground Railroad, and the property has been featured by the Massachusetts Historical Commission.
Listen to the sound of the ocean, while looking out over the rocks which provide a sanctuary for wildlife.
11 Crown Way is just 13 miles north of Boston’s Logan Airport, while enjoying all the charms and delights of the “Yachting Capital of America”, and “New England’s Best-Kept Seaside Secret.”
Call Andrew Oliver on 617.834.8205 or Kathleen Murphy on 603.498.6817 to arrange a showing.
More activity at the top end in Marblehead
Since the beginning of the year a question has been asked about the impact the various tax changes would have on the real estate market. In particular, would the limitation on the amount of property and State income taxes that can be written off against Federal income tax reduce demand at the higher level? Or would these increases be offset by lower personal taxes and by more optimism for the economy?
What we have seen is a continuation of the huge and unmet demand at the lower to mid-levels – stories of 100 parties attending Open Houses last weekend.
And this week, a house in Marblehead was listed at $3.7 million and received an accepted offer within 2 days, while another house, listed at $4.9 million, also received an offer.
And these pending transactions follow the recent news of an $8 million property in Swampscott going under agreement.
In all there are 15 properties listed over $2 million in Essex County with pending sales, in addition to 4 closed sales in the first quarter.
It would seem, therefore, that there is strong buying interest at all price points.
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 Andrew Oliver on 617.834.8205 or Kathleen Murphy on 603.498.6817.
If you are looking to buy, we will contact you immediately when a house that meets your needs is available. In this market you need to have somebody looking after your interests.
Are you thinking about selling? Read Which broker should I choose to sell my house?
Andrew Oliver and Kathleen Murphy are Realtors with Harborside Sotheby’s International Realty. Each Office Is Independently Owned and Operated
@OliverReports
Marblehead: 2017 Housing Market sets another record
(Click here to download a pdf of this report.)
In 2017 the median price of the Single Family Homes (SFH) sold in Marblehead increased by $45,000, or 7%, to $665,000, a new record high for the fourth year in a row. As in every year since 2000 except 2010 and 2011, the median price was higher in the second half of the year than in the first half, breaching $700,000 for the first time.
Sales were down only modestly, despite the low inventory all year, while the number of SFHs for sale on average dropped about 25% from the levels of the two prior years, and by 45% compared with 2014.
It is important to bear in mind that only around 4% of Marblehead’s more than 6,200 SFHs change hands publicly in any year, but 4% is a reasonable sample, with sales taking place from $290,000 to $5.8 million.
Median price
The first chart shows median prices since 2000. I find it helpful to look at longer term trends and this chart shows how prices – which had already risen for some years prior to 2000 – jumped sharply in the early years of the millennium, dropped during the Great Recession, recovered, and have now hit new highs for the last 4 years. Below the chart is a table of prices since 2000.
Source: MLS, Oliver Reports
The second chart shows the median price for the two halves of the year and for the full year for the last 5 years. The second half of 2017 saw a significant upward movement.
The next chart shows how the market can vary from quarter to quarter. In the last 5 years the highest quarterly median price has been recorded once in Q1 and twice each in Q3 and Q4.
Sales
Despite all the (accurate) stories of the lack of inventory throughout 2017 sales were down quite modestly and have been more or less flat for the last 5 years, recovering from the slump of the Great Recession, but still not back to the levels of the peak years. There is no doubt that lack of supply has been holding back sales.
Sales by price
The table shows the breakdown in sales by price for the last four years.
Within basically flat total sales there have been major shifts. 2017 saw a sharp drop in sales in the $4-600,000 range, while sales increased in all brackets from $600,000-$1.5 million. 2017 also saw 2 sales at $5.8 million, the highest ever recorded in MLS.
Houses For Sale
The seasonality of the number of houses for sale largely disappeared in 2017 – the traditional spring pick-up in inventory failed to materialize. The fact that total sales were down only slightly despite the low inventory implies that houses were generally selling more quickly than in prior years.
We start 2018 with just 24 SFHs for sale and 15 of those are above $1 million. The cheapest SFH listed is $519,000 and there are just 3 under $700,000.
Assessed Value to Sales Ratio (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. In a period of rising prices the ASR is likely, as a lagging indicator, to be below 100%.
As we hope out properties are worth more than the AV an ASR below 100% is a positive sign. Remember that AVs are a lagging indicator: the tax bills that have just been sent out for FY2018 are based on actual sales in 2016. Thus the 2017 sales data, reported in this review, will be the basis for FY2019 assessments. And my data compares 2017 sales with AVs based upon 2016 prices.
Let’s look at the ASR in recent years:
Source: MLS, Oliver Reports
For the last 4 years the ASR has been around 90% or below, indicating that the median sale has been taken place at about a 10% premium to Assessed Value, despite the increases in Assessed Values.
Outlook for 2018
Immediately after the 2016 Election I published What does the Election mean for real estate markets? in which I made the bullish case: “The removal of a lot of strangling regulations and the end of gridlock in Congress will produce stronger economic growth. Major infrastructure spending will boost jobs and wages at the lower end, while lower corporate tax rates and lower personal tax rates will produce increased personal wealth. Interest rates will rise, reflecting the stronger economy, and the demand for housing will increase. Greater wealth and confidence will provide a boost to the higher end of the market.” I concluded:”I have no doubt that 2017 will provide many surprises along the way, but with a stronger economy and low supply of houses for sale, there seems little reason for home prices in Marblehead not to continue their steady, but modest, upward movement.”
Um, well we got many surprises…..and some of the economic progress, and prices increased perhaps more than modestly. As for 2018? There are a lot of variables, particularly as people in States like Massachusetts try to figure out how they come out with the tax changes. The economy may well grow at a faster rate than in recent years, which would place upward pressure on interest rates and mortgage rates, while it is hard to see at this stage what will increase the supply of houses for sale.
Andrew Oliver
www.OliverReports.com
Another great Marblehead attraction: the new Transfer Station
When my daughter was visiting from London earlier this year I wanted to show her something special about Marblehead, something that London did not possess. So I drove her around the new Transfer Station, known unofficially as the Dump.
Recently, Sustainable Marblehead organized a tour of the new Station as reported in this Marblehead Reporter article.
Do read the article, as it explains the remediation that has taken place at the site following the discovery of heavy metal soil contamination, as well as revealing that Marblehead currently recycles about 34% of its recyclable material, close to the national average, but way below San Fancisco’s 80%.
The Town’s website, by the way, explains why it is known as a Transfer Station:
All the ash was left on-site until 1975. That was when the ‘dump’ became the ‘transfer station’ whereby trash was collected, then transported to other facilities for disposal via burning or landfill.
Whether you call it the Dump or the Transfer Station, it is well worth a visit and should encourage you to help raise Marblehead’s recycling rate. Sadly, impressed though I am sure she was, my daughter chose to return to London.
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 Andrew Oliver on 617.834.8205 or Kathleen Murphy on 603.498.6817.
If you are looking to buy, we will contact you immediately when a house that meets your needs is available. In this market you need to have somebody looking after your interests.
Are you thinking about selling? Read Which broker should I choose to sell my house?
Andrew Oliver and Kathleen Murphy are Realtors with Harborside Sotheby’s International Realty. Each Office Is Independently Owned and Operated
@OliverReports
House on Beach in Marblehead Back on Market
The sale of this spectacularly located house , sitting directly on and at the top of the longest beach in Marblehead, fell through at the very last moment, thus providing another opportunity for buyers. After a recent huge price reduction 46 Gallison Avenue – which was substantially rebuilt in 1997 and updated in 2016 – is now offered for a mere $52,000 more than just its assessed land value.
There is an Open House this Sunday 12:00-2:00, or call for a private showing. The website includes a video of the property – and of the views.
Can you imagine living here and waking up to this?
followed by this
and then this
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 Andrew Oliver on 617.834.8205 or Kathleen Murphy on 603.498.6817.
If you are looking to buy, we will contact you immediately when a house that meets your needs is available. In this market you need to have somebody looking after your interests.
Are you thinking about selling? Read Which broker should I choose to sell my house?
Andrew Oliver and Kathleen Murphy are Realtors with Harborside Sotheby’s International Realty. Each Office Is Independently Owned and Operated
@OliverReports
How is Marblehead’s 2018 Property Tax rate calculated?
(Click here to download a pdf of this report.)
In my Marblehead announces 2018 Property Tax rate post this week I promised to write another article explaining exactly how the tax rate was calculated. This is it.
The formula is actually very simple: take the $ amount of the previous year’s tax levy, add 2.5% for Proposition 2 1/2, and also add any new growth (such as new construction or a condo conversion). This figure is the new tax levy. To this figure is added debt service – the Principal and Interest payable on the town’s debt.
Here are the numbers for FY 2017 and 2018, remembering that the FY runs from July to June.
The Tax Levy calculation
The $ amount raised by the property tax will increase year by year. That is because of the formula: last year’s number plus 2.5% plus new growth. In the table above you can see how the FY 2017 tax levy of $57,779,806 becomes the base for FY 2018. Add 2.5% and new growth and the new figure is $59,592,925. To both these numbers is added the debt service – Principal and Interest on the town’s debt, much as homeowners pay P&I on their mortgage.
The Tax Rate
The actual tax rate depends upon the total Assessed Value of all property: residential, commercial and personal. The tax rate is calculated by dividing the total dollar amount to be raised by the total Assessed value of all property. Thus, while the $ amount raised by the tax (and therefore the average tax bill) will increase each year, the headline tax rate will fluctuate depending upon the direction of Assessed Values.
In simplistic terms, the $ amount raised before debt service will increase by a little more than 2 1/2% each year, so if the median Assessed Value also increases by a little more than 2 1/2% the tax rate will be unchanged. If the increase in Assessed Values is less than 2 1/2%, then the tax rate will rise. And if the increase in Assessed Values is more than 2 1/2% then the tax rate will rise.
In FY 2017 the tax rate was $11.02, achieved by dividing the almost $64 million to be raised by the $5.8 billion of Assessed value. And in FY 2018 the calcualtion is $66.3 million divided by $6 billion.
How does debt service affect the tax rate?
The announced property tax rate announced each year includes the cost of debt service. As can be seen in the table below, while the tax rate from the levy to pay for town services has declined in recent years as property prices have increased, the cost of debt service has increased steadily, as we are paying for large ticket items such as the Glover School and Transfer Station.
What is the outlook for FY 2019?
The residential real estate market in Marblehead has been very strong in 2017 (and the 2017 median price will be the basis for the FY 2019 tax rate). At this stage it looks as though the median price will be around $660,000, an increase of over 6% from 2016’s $620,000. But bear in mind this is the median price of the roughly 230 SFHs that will sell this year out of the more than 6,200 SFHs in Marblehead, so does not imply that the Town’s Assessed Value will increase by 6%.
Nevertheless, with debt service at this time forecast to be similar to the FY 2018 level, it seems reasonable to expect a modest decline in the tax rate for FY 2019. But tax bills will continue to go up!
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 Andrew Oliver on 617.834.8205 or Kathleen Murphy on 603.498.6817.
If you are looking to buy, we will contact you immediately when a house that meets your needs is available. In this market you need to have somebody looking after your interests.
Are you thinking about selling? Read Which broker should I choose to sell my house?
Andrew Oliver and Kathleen Murphy are Realtors with Harborside Sotheby’s International Realty. Each Office Is Independently Owned and Operated
@OliverReports
Marblehead Oceanfront: $100,000 PRICE REDUCTION through SUNDAY NIGHT
This property offers not just one, but two houses on what is currently one lot. Oceanfront properties on the North Shore in general sell for $500-1,000 plus per sq.ft. 11 Crown Way is offered at just $440 per sq.ft. – and that counts just the main house.
Breathtaking views all the way down to the South Shore from this gracious, restored (1998-2006), 1870s oceanfront home. The open floor plan offers an easy flow for entertaining. The house sits on a private beach, high above the Atlantic, in a wonderfully protected location (no flood insurance required.) VIEWS and VIEWS and VIEWS.
Click 11 Crown Way for photos and description, and here’s a link to the Video. And a recent Crown Way sunset.
Carriage house believed to be a stop on the Underground RaiIroad. Property featured by Massachusetts Historical Commission.
Listen to the sound of the ocean, while looking out over the rocks which provide a sanctuary for wildlife.
Just 13 miles north of Boston’s Logan Airport, while enjoying all the charms and delights of the “Yachting Capital of America”, and “New England’s Best-Kept Seaside Secret.” Huge price reduction allows for any further updating required.
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 Andrew Oliver on 617.834.8205 or Kathleen Murphy on 603.498.6817.
If you are looking to buy, we will contact you immediately when a house that meets your needs is available. In this market you need to have somebody looking after your interests.
Are you thinking about selling? Read Which broker should I choose to sell my house?
Andrew Oliver and Kathleen Murphy are Realtors with Harborside Sotheby’s International Realty. Each Office Is Independently Owned and Operated
@OliverReports
Marblehead announces 2018 Property Tax Rate
(Click here to download a pdf of this report.)
The property tax rate for Fiscal Year 2018 (July 2017-June 2018) will be $11.02, just a penny higher than 2017’s $11.01.
Here is a breakdown in recent years showing the impact of debt exclusions (for items such as schools and the new transfer station):
Source: Marblehead Board of Assessors
As usual, the Board of Selectmen voted to maintain the commercial rate at the same level as the residential rate.
The median Single Family Home assessment for FY 2018 increased 4.3% to $603,000 and the median tax bill for FY 2018 will increase 4.4%, or by $281, to $6,645.
I will provide more details, including a breakdown of how the rate was calculated, in a report this coming weekend.
Meanwhile, may we all have something for which we can be grateful this Thanksgiving.
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 Andrew Oliver on 617.834.8205 or Kathleen Murphy on 603.498.6817.
If you are looking to buy, we will contact you immediately when a house that meets your needs is available. In this market you need to have somebody looking after your interests.
Are you thinking about selling? Read Which broker should I choose to sell my house?
Andrew Oliver and Kathleen Murphy are Realtors with Harborside Sotheby’s International Realty. Each Office Is Independently Owned and Operated
@OliverReports
Marblehead Oceanfront: Buy One Get One Free
This property offers not just one, but two houses on what is currently one lot. Oceanfront properties on the North Shore in general sell for $500-1,000 plus per sq.ft. 11 Crown Way is offered at just $440 per sq.ft. – and that counts just the main house. The carriage house is free.
Breathtaking views all the way down to the South Shore from this gracious, restored (1998-2006), 1870s oceanfront home. The open floor plan offers an easy flow for entertaining. The house sits on a private beach, high above the Atlantic, in a wonderfully protected location (no flood insurance required.) VIEWS and VIEWS and VIEWS.
Last Open House this Sunday 12:00-2:00 at 11 Crown Way. And here’s a link to the Video. and a recent Crown Way sunset.
Carriage house believed to be a stop on the Underground RaiIroad. Property featured by Massachusetts Historical Commission.
Listen to the sound of the ocean, while looking out over the rocks which provide a sanctuary for wildlife.
Just 13 miles north of Boston’s Logan Airport, while enjoying all the charms and delights of the “Yachting Capital of America”, and “New England’s Best-Kept Seaside Secret.” Huge price reduction allows for any further updating required.
Owner says “Bring Me An Offer.”
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 Andrew Oliver on 617.834.8205 or Kathleen Murphy on 603.498.6817.
If you are looking to buy, we will contact you immediately when a house that meets your needs is available. In this market you need to have somebody looking after your interests.
Are you thinking about selling? Read Which broker should I choose to sell my house?
Andrew Oliver and Kathleen Murphy are Realtors with Harborside Sotheby’s International Realty. Each Office Is Independently Owned and Operated
@OliverReports
Marblehead’s Collapsing Inventory in One Chart
Many of the headlines about real estate over the last year or so have referred to the decline in inventory. One result of the decline has been bidding wars. Another consequence is that some prospective buyers have become discouraged and stopped looking actively, while some sellers have not listed their house because they fear they will not be able to buy another house.
The chart below shows the month-by-month inventory over the last 4 years. The number of homes for sale in 2016 was quite consistent with 2015, but 2017 has seen a major drop. Most notably, there was no real pick up in inventory in either of the traditional selling seasons: spring and fall.
Source: MLS, Oliver Reports
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 Andrew Oliver on 617.834.8205 or Kathleen Murphy on 603.498.6817.
If you are looking to buy, we will contact you immediately when a house that meets your needs is available. In this market you need to have somebody looking after your interests.
Are you thinking about selling? Read Which broker should I choose to sell my house?
Andrew Oliver and Kathleen Murphy are Realtors with Harborside Sotheby’s International Realty. Each Office Is Independently Owned and Operated
@OliverReports
Videos of Marblehead from Channel 5’s Chronicle
This week Chronicle showed a new Marblehead 2017 video.
I also found this earlier Marblehead 2013 video.
Shayna Seymour was the presenter of both videos. I think she must really like Marblehead. What good taste she has.
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 Andrew Oliver on 617.834.8205 or Kathleen Murphy on 603.498.6817.
If you are looking to buy, we will contact you immediately when a house that meets your needs is available. In this market you need to have somebody looking after your interests.
Are you thinking about selling? Read Which broker should I choose to sell my house?
Andrew Oliver and Kathleen Murphy are Realtors with Harborside Sotheby’s International Realty. Each Office Is Independently Owned and Operated
@OliverReports
The best value in Marblehead Oceanfront property?
This property offers not just one, but two houses on what is currently one lot. Oceanfront properties on the North Shore in general sell for $500-1,000 plus per sq.ft. 11 Crown Way is offered at just $440 per sq.ft. – and that counts just the main house.
Breathtaking views all the way down to the South Shore from this gracious, restored (1998-2006), 1870s oceanfront home. The open floor plan offers an easy flow for entertaining. The house sits on a private beach, high above the Atlantic, in a wonderfully protected location (no flood insurance required.) VIEWS and VIEWS and VIEWS.
Open House Sunday 12:00-1:30 at 11 Crown Way. And here’s a link to the Video. And a recent Crown Way sunset.
Carriage house believed to be a stop on the Underground RaiIroad. Property featured by Massachusetts Historical Commission.
Listen to the sound of the ocean, while looking out over the rocks which provide a sanctuary for wildlife.
Just 13 miles north of Boston’s Logan Airport, while enjoying all the charms and delights of the “Yachting Capital of America”, and “New England’s Best-Kept Seaside Secret.” Huge price reduction allows for any further updating required.
Owner says “Bring Me An Offer.”
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 Andrew Oliver on 617.834.8205 or Kathleen Murphy on 603.498.6817.
If you are looking to buy, we will contact you immediately when a house that meets your needs is available. In this market you need to have somebody looking after your interests.
Are you thinking about selling? Read Which broker should I choose to sell my house?
Andrew Oliver and Kathleen Murphy are Realtors with Harborside Sotheby’s International Realty. Each Office Is Independently Owned and Operated
@OliverReports
Marblehead house on Goldthwait Beach for only $52,000*
Sitting directly on and at the top of the longest beach in Marblehead is 46 Gallison Avenue. Huge price reduction means the house – which was substantially rebuilt in 1997 and updated in 2016 – is now offered for a mere $52,000 more than just its assessed land value. (more…)
Marblehead Oceanfront Open House: “Bring me an Offer”
Breathtaking views all the way down to the South Shore from this gracious, restored (1998-2006), 1870s oceanfront home. The open floor plan offers an easy flow for entertaining. The house sits on a private beach, high above the Atlantic, in a wonderfully protected location (no flood insurance required.) VIEWS and VIEWS and VIEWS.
Open House Sunday 12-1:30 at 11 Crown Way. And here’s a link to the Video.
Carriage house believed to be a stop on the Underground RaiIroad. Property featured by Massachusetts Historical Commission.
Listen to the sound of the ocean, while looking out over the rocks which provide a sanctuary for wildlife.
Just 13 miles north of Boston’s Logan Airport, while enjoying all the charms and delights of the “Yachting Capital of America”, and “New England’s Best-Kept Seaside Secret.” Huge price reduction allows for any further updating required.
Owner says “Bring Me An Offer.”
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