Marblehead 2014 housing market reaches new high

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Here are the highlights of the market in Marblehead in 2014.

Single Family Homes (SFHs)
– the median SFH price increased 10.3% to a record high of $590,000, beating the previous peak of $585,000 in 2006
– sales of SFHs increased to 245, the best year since 2004
– the Assessed Value to Sales Ratio (ASR*) dropped from 90.5% to 88.0% overall, an indication of rising prices

Condos
– the median condo price in 2014 was down 0.6% to $328,000. Because the condo market is small and bifurcated in Marblehead I will break the numbers down into segments in a later report
– sales were 43, much the same as the two previous years and, in fact, in line with the average for the last 9 years
– the ASR* dropped from 94.5% to 88.5%

Property Taxes
The tax rate for FY2015 is $11.08, virtually unchanged from $11.09 in FY2014. The average tax bill will increase by $309 or 4%.

I will publish a more detailed market report next week.

* The ASR is the Assessed Value (AV) divided by the Sales Price (SP).If the ASR is below 100%  it means that properties are selling for more than their AV. Conversely, properties selling below their AV will have an ASR above 100%.
– As we all hope our properties are worth more than the AV we look for an ASR below 100% as a positive sign. 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 just announced for FY2015 are based on actual sales in 2013. Thus the 2014 sales data, reported in this review, will be the basis for FY2016 assessments. And remember, also, that falling tax rates rarely translate into falling tax bills!
– I will be publishing a report in the near future on the average tax bill per city and town in Essex County to go with my recent Essex County 2015 property tax rates report.

If you – or somebody you know – are considering buying or selling a home, or 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

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