Marblehead: Sold and For Sale by price

We know there is a chronic shortage of houses for sale generally, but the situation varies greatly by price. Look at this chart, which shows the number of homes in Marblehead sold so far in 2017  or where the sale is pending, versus the number currently available for sale:

Source: MLS, Oliver Reports

As a very rough guide, the number of sales and pending sales in early May will equal actual sales for the first half of the year.

A market is considered to be in equilibrium between buyers and sellers when the number of homes for sale equals about 6 months of sales. If that were the case in Marblehead, the two columns – for sales/pending sales and homes for sale – would be the same size.

Which they are not. At all price points up to $1 million, sales/pending sales  greatly exceed supply. And at all price points above $1 million, supply greatly exceeds sales/pending sales.

One of the surprises of the market this year has been how weak demand has been for higher-priced homes. Logically, with the market so active under $1 million, and macro-economic factors – the stock market at record levels, expectations/hopes of tax cuts coming – positive, one would expect to see sellers trading up. And that is especially true in Marblehead, a town people are reluctant to leave – meaning most sellers plan to buy another house in town.

The optimistic view is that this may be a timing issue and that sales of higher priced houses will soon pick up. But clearly this is an excellent time to trade up to a higher priced home – and you don’t have to compete with 90 groups at Marblehead Open House.

If you are looking to buy, I will contact you immediately when a house that meets your needs is available. In this market you need to have somebody looking after your interests.

Are you thinking about selling? Read  Which broker should I choose to sell my house?

Please contact me on 617.834.8205 or Andrew.Oliver@SothebysRealty.com for a free market analysis and explanation of the outstanding marketing program I offer

Andrew Oliver is a Realtor with Harborside Sotheby’s International Realty. Each Office Is Independently Owned and Operated

@OliverReports