How many million dollar homes sold in Marblehead last year?
The answer is 26, up from 24 in 2011. The highest price MLS sale was $4.1 million. At the start of 2013 a house listed at $4.75 million went under agreement.
If the past is any guide, then 2013 should see increased demand at the top end.
Here are the numbers:
I would love deeper analytics that demonstrates the churn of the various market segments. For instance, assume there were only 42 homes in all of Marblehead valued between 1 and 1.9mn, then one could say 50% of the stock churned. One might suggest either strong demand or supply and make a case regarding price pressure in the segment. If on the other hand, there are 420 homes in this segment, then only 5% churned. Comparing the churn rates will shed light on the segments experiencing greater volatility as a percentage of their base, which may impact pricing. An important consideration to a prospective house seller.
Bryan – I’ve given your comment some thought. Apart from market conditions, which can vary by price and location, the two main considerations in pricing a house for sale are recent sales in the seller’s price range and what is currently available for sale in that price range – the competition.
There are over 6,000 SFHs in Marblehead and only about 200 or so sell each year, just 3%. 97% of the houses don’t come on the market in any year and therefore don’t have any impact on pricing. With the median price in MHD around $500,000, for example, that means there are some 3,000 houses in the $500,000 and under range. I am not sure how that information is useful to a seller.
Yes we could narrow it down, but I still don’t see how that knowledge would have an impact on a pricing decision. The competition for any house is what’s for sale in that price range – not what’s not for sale!
Analyzing the stock of houses in Marblehead and seeing what percentage of each price range sells in any year would be interesting to a statistician like me, but since the overall figure is 3% it is very unlikely that any meaningful conclusions would be reached. As I look at different figures and numbers the question I try to ask always is: what, if anything, does this mean? Quite often I will produce a set of numbers and conclude that they are not telling me anything helpful. My goal is to produce numbers that are meaningful and to interpret them to the best of my ability.
Having said that, if a seller asked me to produce this data as s(he) was considering listing I would be happy to try to do so.
This is good news indeed! Thanks for the numbers, it is helpful to see how the breakdown is in the million dollar range for SF and also helpful to see how it matches with the past 3 years. Here’s hoping we will all see increased sales in the higher ranges in 2013.