This Lynn 2015 Housing Market Review shows how far the market has recovered. In 2015 sales jumped 16% and the median price improved 9%, although both numbers remain below their 2005 peaks. The biggest improvement has been seen in distressed sales – foreclosures and short sales – which have plummeted from 34% of total sales as recently as 2011 to just 8% in 2015.
The big drop in distressed sales means that non-distressed sales have almost doubled – from 257 in 2011 to 504 in 2015.
The increase of 9% in 2015 took the median price back to within 7% of the 2005 peak.
2012 was unusual in that the highest price occurred in Q4 (it is normally in Q2 or Q3), this was an indication of an improving market.
One way I measure prices is by the ratio (ASR) of Assessed Value (AV) to Sales Price (SP). The ASR is the AV divided by the SP: if the SP is rising (prices going up), the ASR will fall.
Properties selling above their AV will have an ASR below 100%. What this means is that in a period of rising prices the ASR is likely to be falling. So what we, as homeowners, want is an ASR below 100% and falling.
Remember that AVs are a lagging indicator: the tax bills that have just been sent out for FY2016 are based on actual sales in 2014. Thus the 2015 sales data, reported in this review, will be the basis for FY2017 assessments.
In Lynn in 2015 the ASR dropped from 83.2% to 81.7%. Although this is a small drop, it means that the median SFH sold at a 22% premium to its Assessed Value.
The dramatic increase in non-distressed sales over the last four years, coupled with improved prices, indicate that the Lynn market is well on its way to recovery.
The announcement that GE is relocating its corporate HQ to Boston is a reminder that GE built the first jet engine in Lynn., while as this post Lynn, Lynn, city of……. revitalization records there are plans for Lynn’s development.
All in all, the outlook is for continued improvement in the housing market in Lynn.
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 Andrew.Oliver@SothebysRealty.com.
Andrew Oliver is a Realtor with Harborside Sotheby’s International Realty. Each Office Is Independently Owned and Operated
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