Marblehead housing inventory: even worse than you think
There are currently just 49 Single Family Homes (SFH) for sale in Marblehead, compared with 90 a year ago at this time. But the position for buyers is even worse than it appears.
One of the numbers real estate agents follow is the number of days a property has been on the market (DOM). Last year MLS introduced a new measure, Days to Offer (DTO), which – yes- measures the number of days a property is on the market before it receives an accepted offer.
The theory behind DOM is that a house receives the greatest attention, from both buyers and agents, when it first comes on the market, but that as time moves on the listing becomes stale. In an active market such as exists now, a property sees the most activity and interest in the first 30 days.
With that in mind, let’s look at three categories: current inventory, pending sales and sales so far in 2015. In each case I will show a pie chart of the overall picture and a table giving a breakdown by price band. I’ll summarize and add my conclusions at the end of the article.
Light blue represents 0-29 DOM: just 16 of 49 houses for sale are in this category or 33%:
This category includes all houses which have an accepted offer but where closing has not yet occurred.
Note that the light blue slice is much, much bigger: 36 out of 52, or 69%.
This category is all the houses that have closed in 2015 so far. Note that the light blue category, those which received an offer in 0-29 days, represents 15 of 44, or 34%, very similar to the For Sale number:
The key numbers are those for pending sales, as these are the most current figures on houses that have recently received an offer. Whereas 34% of the houses that have sold this year received an offer in under 30 days, fully 69% of all pending sales (and 78% of pending sales under $1 million) received an offer within 30 days of hitting the market. But only 33% of houses currently for sale have been on the market less than 30 days.
What do these numbers tell us?
In simple terms, houses are selling quickly. While it is understandable that houses took longer to sell during the winter months, in the current market houses are moving. And the market has little fresh inventory: only 16 of the very low inventory of 49 houses for sale have been on the market less than 30 days.
There are two message for sellers and buyers each:
This is a great time to list, but if your house has been on the market for more than 30 days it might be time to ask why: is it price or is it some other factor?
Apart from the obvious – be ready to move quickly and make sure that financing is committed before you make an offer – check out houses that have been on the market for an extended time and may have been overlooked (it happens). You have more chance of having a lower-priced offer accepted on a “stale” listing than on one fresh to the market.
Easter and Passover were early this year, school vacation week is just ending: the spring buying season has now officially started. There are 10 weeks until July 4: fasten your safety belts for an exciting ride.
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 Sotheby’s International Realty® is a registered trademark licensed to Sotheby’s International Realty Affiliates LLC. Each Office Is Independently Owned and Operated
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