Mortgage loan limits increase in MA Counties
In 5 MA Counties – Essex, Middlesex, Norfolk, Plymouth and Suffolk – conforming loan limits for mortgages sold to Fannie Mae and Freddie Mac in 2015 will increase from $470,350 to $517,500 “because those counties experienced increases in local home values”, according to the Federal Housing Finance Agency (FHFA).
This increase is good news for borrowers as it means the starting point for jumbo loans will increase in those Counties. (more…)
Most expensive homes for sale in Massachusetts
Thanksgiving is next week (how did that happen so quickly?), Hanukkah less than 4 weeks away and Christmas 5 weeks.
Those of you who are well organized will be well along with your shopping. Here are a few suggestions from a Boston Globe/Zillow article for the rest of us:
Most expensive homes for sale (more…)
Why Jon Lester may not be returning to the Red Sox
From MLS data I learn that Jon Lester listed his house in Newton on September 28 and sold it on November 5 for the asking price of $1.85 million. So what does that mean for the Red Sox’s chances of re-signing Lester? (more…)
Pending Homes sales remain strong in Massachusetts
The Massachusetts Association of Realtors (MAR) reported this week that accepted offers in October for Single Family Homes (SFHs) increased 23.5% from October 2013, and for condos increased 14% year on year. These numbers represent the 20th consecutive month of year on year gains.
MAR also reports monthly changes in median prices – just under 2% year on year for both SFHs and condos. For many reasons I pay little attention to – and never report – monthly movements in prices, but I agree with the general thesis that prices have stabilized as they have returned to prior peak levels. (more…)
Million Dollar Home Sales hit new record in Marblehead
Record Sales
Sales of Marblehead homes over a Million Dollars have hit a new record in 2014. The previous peak was 36 in 2005, and this year we already have 38 closed sales with a further 5 scheduled to close before year end for a total of 43.
Sales by price bracket (more…)
Homes for sale in Essex County plummet in recent years
This week I am looking at the number of Single Family Homes (SFHs) for sale, as a follow up to last week’s Where have all the Condo sellers gone? article. In that article I pointed out that the number of condos for sale, in both Marblehead and Essex County, was down some 70% from the levels seen in the 2006/07 period, and offered some thoughts on why that might be. (more…)
Flood Insurance: “Because without it your home is a disaster waiting to happen”
It seems appropriate on this morning of another nor’easter to echo the reminder recently sent out by FEMA.
– Flood damage is not covered by most homeowners insurance.
– Flooding is the #1 natural disaster.
– People outside high-risk areas file over 20% of NFIP claims and receive one-third of disaster assistance for flooding
– In high-risk areas homes have at least a 1 in 4 chance of flooding over a 30 year mortgage
– Flood insurance is mandatory if you live in a high-risk area and have a mortgage from a federally regulated or insured lender.
For more information go to FloodSmart.gov (more…)
Where have all the Condo sellers gone?
I have noticed for some time that the number of condos for sale in Marblehead has been low compared with the days of my old Marblehead Reporter articles (2008-11) when my memory said there always seemed to be 50 or more for sale.
I checked the numbers for today and compared them over the last 10 years. The questions that came to mind were: was this just a Marblehead phenomenon? Was it maybe because of the time of the year? And if not, what was the reason for the decline? (more…)
Marblehead’s 200th SFH sale earliest since 2004
Marblehead recorded its 200th Single Family Home sale on Friday, the earliest date that has been achieved since 2004. A further 45 SFHs are pending, with the majority likely to close this year. Total sales for 2014, therefore, are likely to be second only to 2004 this century.
Source: MLS, Oliver Reports
Essex County Third Quarter Housing Review
The Single Family Home (SFH) market
The median price of a SFH in Essex County in Q3 2014 was flat compared with a year earlier, but Q3 2013 was the quarter with the highest median price of the year. Note that quarterly prices nearly always fluctuate to some extent during the year; it is very rare for prices to rise steadily throughout the year. Q3 has seen the highest price of the year in each of the last 4 years.
The record median price for the year was $394,400 in 2005 and it looks as though 2014 will be in the region of $385,000 so we are very close to returning to that previous peak. (more…)
Swampscott Third Quarter Housing Review
The Single Family (SFH) market
After enjoying good price gains in 2013 the median price in 2014 has been more or less flat all year. And the full year’s median price seems likely to come in as much as 15% below the peak of 2005: (more…)
Salem Third Quarter Housing Review
The Single Family Home (SFH) market
The market continued to improve in Q3 and it looks like the full year to be very close to, or even slightly exceed, the previous high of $349,000 in 2005: (more…)
Beverly Third Quarter Housing Review
The Single Family Home (SFH) market
The median price in Beverly in Q3 was flat with a year ago, consistent with the trend in Essex County overall. While prices have recovered from the effects of the great recession, the 2014 number is likely to come in some 4-5% below the peak level of $400,000 in 2004. (more…)
Marblehead housing market now
The Single Family Home (SFH) market
The market in Marblehead continues to be quite active, with 15 Single Family Homes (SFHs) having received accepted offers already in October, compared with 21 in the whole of October 2013. New sales in September also showed a sharp increase over 2013, more than making up for the drop in August.
The first chart shows quarterly numbers for median prices for the last few years. The Q3 number is not a record. The YTD through September median price is $585,600 so for the full year we will end up very close to, or slightly higher than, the record of $585,000 set in 2006. It may come down to which of the houses under agreement actually closes before year end:
Source: MLS, Oliver Reports
The current composition of houses available for sale shows an increase in supply at the lower end of late and also in the $1-2 million bracket. Both these segments have been active this year.
Source: MLS, Oliver Reports
Looking at what has sold this year, note that sales from $500-749k have exceeded those under $500,000, a reversal of last year’s relationship, showing both that prices are increasing and buyers moving up.
Source: MLS, Oliver Reports
The Condo Market
The condo market looks likely to emulate the SFH market ending 2014 very close to the 2007 peak of $346,000, as through 9 months the median price was $347,750:
Source: MLS, Oliver Reports
It is important to remember that the law of small numbers applies to condos in Marblehead. For example, sales to date in the $3-400k range (which will determine the year’s median price) and the gaps between sales have been as follows:
Source: MLS, Oliver Reports
The median through 9 months is the average of $328,000 and $367,500, or $347,750. One more sale outside these prices would move the median price by almost $20,000. This is why I comment on prices in the condo market on a semi-annual rather than quarterly basis.
Talking of sales, here are the numbers for the first 9 months of 2014 compared with 2013 and broken down by price range. The increase in the $500-749k range was what drove the increase in the median price.
Source: MLS, Oliver Reports
There is little change year over year in condos available for sale.
Source: MLS, Oliver Reports
But look at the change over the last ten years:
Source: MLS, Oliver Reports
Marblehead is not only a small market for condos, but that market is split between a small number of purpose built condos and the HGTV-driven boom in “condo conversions” of older 2-4 unit apartment buildings. It is the latter market which has largely disappeared.
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.
Andrew Oliver is a Realtor with Harborside Sotheby’s International Realty. Sotheby’s International Realty® is a registered trademark licensed to Sotheby’s International Realty Affiliates LLC. Each Office Is Independently Owned and Operated
Housing Market 2014 – the first nine months
As promised last week I am publishing numbers for the first 9 months of 2014. These show that for Essex County and Massachusetts overall, sales of Single Family Homes (SFHs) are down slightly year-on-year, while prices are up slightly. There are, however, quite wide fluctuations from town to town: (more…)
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