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.
Here are the details for SFHs. First, the median price:
Source: MLS, Oliver Reports
While sales were down slightly overall, all of the decline came in the market under $500,000, with increases in all other price ranges:
Sources: MLS, Oliver Reports
Looking at what is currently for sale, there is a decline compared with last year at the low end and also in the $750-999k range, with most other brackets showing an increase in supply:
Source: MLS, Oliver Reports
The Condo Market
We have seen over the last year or so a trend of increasing sales and prices. Two reasons are that condos become more attractive as the price of SFHs rises, and that mortgage have become easier to get on smaller condo developments.
The median price for Q3 was a record and the full year will also set a record. YTD the median price is $255,000 which compares with the current record of $246,000 in 2005.
Source:MLS, Oliver Reports
In contrast to SFHs, sales of condos increased 8% in Q3, with marked increases in sales above $350,000:
Source: MLS, Oliver Reports
The supply of condos today is very similar to the position a year ago overall, with some minor changes at different price levels:
Source: MLS, Oliver Reports
Summary
These numbers are consistent with a housing market that has recovered from the effects of the great recession and is now in a stable condition. With the economy gathering momentum and geopolitical concerns helping to drive down mortgage rates, the outlook is for steady improvement ahead.
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 [email protected].
Andrew Oliver is a Realtor with Harborside Sotheby’s International Realty
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