SALEM 2023 MARKET REPORT and 5-YEAR REVIEW

The many attractions of Salem continue to attract buyers, especially younger buyers moving out of Boston. Perhaps surprisingly in a time when mortgage rates have more than doubled, sales have continued to be brisk, and in every month in 2023 from April onwards more than 50% of sales have taken place over list price.
Fluctuations in median prices can and do occur from quarter to quarter, based upon those properties which actually sell in any quarter, 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 download my Essex County report.

Median Price and Sales
The median price of the Single Family homes sold in Salem increased 39% from $431,250 in 2019 to $600,000 in 2023, a slight decrease from $611,000 in 2022. Sales dropped slightly from 2019 to 2022, but fell sharply in 2023.

The median price of the Condos sold increased by 37% from $355,000 in 2019 to $485,000 in 2023. Sales started to fall in the second half of 2022 and were also down sharply in 2023.

Single Family Sales by Price
Another way to look at sales is the distribution by price.

In 2019, 71% of Single Family sales were under $500,000, and by 2023 that had dropped to 17%. Conversely, the share of sales over $600,000 jumped from 12% to 51% 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 SFs the increase was 35% (much the same as the median price increase) from $266 in 2019 to $359 in 2022; for Condos 33% from $291 to $387.

Sales have been quick in recent years, with DTO of 7 days the norm for both SFHs and Condos. The more than doubling of mortgage rates in 2023 had little impact on the pace of sales, in large part because supply was limited as many sellers did not want to surrender their cheap mortgages.

CURRENT INVENTORY
Inventory is always low at the start of the year, but this year’s level is extreme

Andrew Oliver. m. 617.834.8205

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www.OliverReportsMA.com
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