Housing supply even tighter than a year ago
The supply of houses and condos for sale in North Shore towns, as well as throughout Essex County and Massachusetts, is down from last year’s levels – which were themselves low.
Housing markets are generally regarded as being in equilibrium between sellers and buyers when the supply of houses for sale is equal to the number that would be sold in 6 months. So a housing supply of 6 months represents equilibrium; more than 6 months means the supply is high enough to favor buyers; less than 6 months the lack of supply favors sellers – what is known as a sellers’ market.
The following tables show the numbers for 2016 in the left column and 2015 in the right one.
Single Family Homes (SFH)
Overall supply in both Essex County and Massachusetts is less than 4 months and down from a year go. In individual towns, only Marblehead has a slight increase in supply, but the number remains below 6 months:
Condos
The condo market is even tighter with supply of less than 3 months in Essex County and Massachusetts, and all areas showing a decline from this time a year ago.
Source: MLS, Oliver Reports
Comment
This analysis shows the overall markets. There will be differences at differing price points, but because higher-priced houses usually take longer to sell, that means supply at the lower prices is even less than shown.
The housing market here may not be crazy, but clearly there is less supply than buyers would like.
If you are considering selling your home please contact me on 617.834.8205 or Andrew.Oliver@SothebysRealty.com for a free market analysis and explanation of the outstanding marketing program I offer.
Read Which broker should I choose to sell my house?
If you are looking to buy, I 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.
Andrew Oliver is a Realtor with Harborside Sotheby’s International Realty. Each Office Is Independently Owned and Operated
@OliverReports