MARBLEHEAD 2023 MARKET REPORT and 5-YEAR REVIEW
Just as in prior periods of housing market strength, the market in Marblehead saw a steady – rather than spectacular – increase in prices during the boom days of asset price increases, which were fueled by cheap credit, during and after the pandemic.
The reasons are as old as the town itself: Marblehead is a great place to live and bring up children, which is why people stay in their houses longer than they do elsewhere. Add to that, WFH (Work from Home), making the commute to Boston less of an issue.
The more than doubling of mortgage rates has also been a major factor in encouraging people to stay in their existing homes, further reducing the supply of homes for sale.
Finally, fluctuations in median prices can and do occur when the numbers are small, which is why the trend is more important than the exact numbers.
If you are thinking of selling, please contact me for a current market analysis for your property. Go HERE to download a pdf of this report and HERE to downlaod my Essex County report.
Median Price and Sales
The median price of the Single Family homes sold in Marblehead increased 34% from $717,500 in 2019 to $964,875 in 2023, and by 3% from 2022 to 2023. Sales were steady from 2019 to 2021, but dropped in 2022, and again in 2023.
The median price of the Condos sold increased 55% from $398,900 in 2019 to $620,000 in 2023, with sales following a similar pattern to that for SFHs. The second half of the year saw 11 of the 13 sales over $750,000, driving up the median price. By contrast, 4 of the 6 sales under $400,000 took place in Q1, driving down the median price in that Quarter.
Single Family Sales by Price
Another way to look at sales is the distribution by price. In 2019, 62% of Single Family sales were under $800,000, and in 2023 that had halved to 31%. Conversely, the share of sales over $1 million doubled from 24% to 47% in the same period.
Condo Sales by Price
In a small Condo market, with a wide range of sale prices, median prices can fluctuate widely, depending upon the price bracket of sales in any period. The share of sales under $400,000 dropped from 54% in 2019 to just 19% in 2023, while the share over $750,000 leaped from 2% to 30%.
Price per Sq Ft (PSF) and Speed of Sales (Days to Offer Accepted – DTO)
PSF is another way to look at sales. For SFHs the increase was 33% (in line with the median price increase) from $348 in 2019 to $464 in 2023; for Condos it was 36% from $339 to $461.
Since the start of the pandemic, sales have been very quick, with 7 days until an offer the norm for SFHs. The more than doubling of mortgage rates in 2023 had little impact on the pace of sales, as supply was limited as many sellers did not want to surrender their cheap mortgages.
The pace of Condo sales also held steady in 2023 until Q4.
CURRENT INVENTORY
In mid-January, there are only 8 properties – 6 SF and 2 Condos – for sale in Marblehead, making this an attractive time for sellers to take advantage of the demand that still exists.
COMMENT
Just as in prior periods of housing market strength, the market in Marblehead saw a steady – rather than spectacular – increase in prices during the boom days of asset price increases, which were fueled by cheap credit, during and after the pandemic.
The reasons are as old as the town itself: Marblehead is a great place to live and bring up children, which is why people stay in their houses longer than they do elsewhere. Add to that, WFH (Work from Home), making the commute to Boston less of an issue.
The more than doubling of mortgage rates has also been a major factor in encouraging people to stay in their existing homes, further reducing the supply of homes for sale.
Finally, fluctuations in median prices can and do occur when the numbers are small, which is why the trend is more important than the exact numbers.
If you are thinking of selling, please contact me for a current market analysis for your property.
Andrew Oliver. m. 617.834.8205
Andrew@TeamHarborside.com
www.OliverReportsMA.com
www.OliverReportsFL.com