Essex County Housing Inventory by price

This report shows housing inventory, broken down by price, for both Single Family Homes (SFH) and Condos on February 1st for the last three years. Read also Essex County Housing Market: demand up, supply down for an analysis of the market over the last three years.

Single Family Homes (SFH)
While the overall decrease in supply is 23% compared with 2015, the number is much greater at lower price levels, while at higher price points supply is flat to up.

Source: MLS, Oliver Reports

Condos
The decline in inventory is 25% compared with 2015, with again the most pronounced drop coming at the lower price levels and supply increasing at higher price points:

Source: MLS, Oliver Reports

Comment
I have been pointing out the shrinkage in supply of both SFHs and Condos in Essex County for the last two years and forecasting that this lack of supply, coupled with strong demand, will lead to rising prices. In my Essex County 2016 Housing Market By The Numbers review I show that median prices for both SFHs and Condos increased 5% last year to new record highs.
I can think of no likely reason why the combination of strong demand and low inventory will not lead to a continued rise in median prices in 2017.