Marblehead 2022 Housing Market Review
Single Family Homes (SFH)
The median price of Single Family Homes (SFH) sold in 2022 increased 10.4% to $938,000, and reached exactly $1 million in the second half of the year. Sales, reflecting a number of headwinds – amongst them, reduced inventory and a doubling of mortgage rates – dropped below 200 for the first time since 2011.
The share of sales over $1 million increased from 34% in 2021 to 46% in 2022, driving the median price for the year to over $900,000.
Condo sales dropped below 50 for the first time since 2014. The median price fluctuated Quarter to Quarter. – which can happen when the number of sales is small and the price range of sales wide. Overall for the year, the median price increased 5.8% to $550,000, reflecting the big jump in market share of sales in the $500-750,000 range.
The big feature of 2022 was the huge jump in mortgage rates. The 30-year Fixed Rate Mortgage (FRM) ended 2021 at 3.1%, rose to 4.7% at the end of Q1, to 5.7% at the end of Q2, to 6.7% at the end of Q3, and peaked at just over 7%, before easing to 6.1%, still a 14- year high.
The Federal Reserve increased its interest rate (Fed Funds rate – FFR) rapidly during 2022. The FFR affects banks’ prime rates, used for setting interest rates on credit cards and auto loans.
The 30-year Fixed Rate Mortgage (FRM) is determined by market forces – not the Federal Reserve – and, in particular, is priced at a premium – or spread – over the yield on the 10-year Treasury (10T). The Fed’s determination to bring inflation under control, even at the cost of higher unemployment and causing a recession, led to a repricing of risks. The yield on 10T started the year at 1.6% (when the FRM was 3.2%), rose to 3.5%, dropped to 2.6%, rebounded to 4.2% and closed the year at 3.9%, before dropping again in January. No wonder the FRM oscillated but was mostly in an upward trend in 2022.
Economic and mortgage commentary
How Marblehead’s 2023 Property Tax Rate is Calculated
Essex County 2023 Property Tax Rates: Town by Town guide
Why Mortgage Rates Will Fall
Recession? Yes, no, maybe….
Federal Reserve tries to rewrite history
Has Inflation Peaked?
Federal Reserve in Fantasyland: Implications for Housing Market
If you – or somebody you know – are considering buying or selling a home and have questions about the market and/or current home prices, please contact me on 617.834.8205 or email@example.com.
Andrew Oliver, M.B.E.,M.B.A.
Market Analyst | Team Harborside | teamharborside.com
“If you’re interested in Marblehead, you have to visit the blog of Mr. Andrew Oliver, author and curator of OliverReportsMA.com. He’s assembled the most comprehensive analysis of Essex County we know of with market data and trends going back decades. It’s a great starting point for those looking in the towns of Marblehead, Salem, Beverly, Lynn and Swampscott.”
Andrew Oliver, M.B.E., M.B.A.
Real Estate Advisor
800 Laurel Oak Drive, Suite 400, Naples, FL 34108