Housing Inventory slump continues
Single Family Homes (SFH)
After years of decline, the number of Single Family Homes (SFH) for sale in Essex County on the first of the month compared with a year earlier (YOY) increased from August 2018 until June 2019. Since then the decline has resumed and, in fact, accelerated, as this table shows:
The next two charts (the first for January to June; the second July to December) show the number of SFHs for sale on the first of the month since 2017. In the first chart the number for February 2020 -514 – shows the renewed decline (in 2019 inventory was increasing until June).
The second chart shows the decline YOY each month from July to December in 2019.
Condos
The number of condos for sale increased YOY from June 2018 until August 2019, but since then there has been a decline, which accelerated for a while and has since stabilised:
These two charts show numbers since 2017 for January to June, and July to December.
The first chart shows the decline in January and February 2020 YOY, while in 2019 inventory was increasing in the first 6 months of the year.
The second chart shows inventory continuing to increase in 2019 YOY in July and August, steadying in September, and then resuming the decline in October.
Comment
While the overall supply of SFHs in Essex County remains very low at just 1 month ( a market is considered to be in equilibrium between buyers and sellers when there is 6 months of supply) the position varies widely by price, as shown in this table:
While inventory early in the year is normally low, a feature of 2020 so far is the speed at which new listings, if price appropriately, are selling. If you are thinking of selling, now is a really good time.
The conclusion remains that the market remains in favour of sellers right up to $1.5 million, but above that dramatically swings in favour of buyers.
Andrew Oliver
Market Analyst | Team Harborside | teamharborside.com
REALTOR®
Sagan Harborside Sotheby’s International Realty
One Essex Street | Marblehead, MA 01945
m 617.834.8205