Housing Supply by Price in North Shore Towns
Conventional wisdom is that a market is in equilibrium between buyers and sellers when the current inventory represents 6 months of sales. Currently, as shown in the tables below, the overall inventory of Single Family Homes (SFH) in the 34 cities and towns of Essex County represents just 3.1 months of supply, indicating that the market still favours sellers.
But overall numbers can disguise large differences in supply at different price points. The first table shows two supply numbers: in Marblehead, Swampscott and Beverly for prices under $750,000 and for prices above that level; in Salem, Lynn and Essex County overall the numbers are for prices under $500,000 and for prices about that level.
Notice how supply increases dramatically at higher price points. The following tables for individual towns break down that supply further.
Marblehead
The market comes into equilibrium above $600,000 and favours buyers above $1.5 million. Note that generally higher priced houses take longer to sell and also often see higher sales in summer months. (more…)
Housing inventory: what a difference price makes
Yesterday’s report Housing inventory: town by town guide showed that the overall supply of Single Family Homes (SFH) in Essex County was 2.8 months, whereas a market is regarded as being in equilibrium between buyers and sellers when there is 6 months of supply.
But as this report shows, an overall figure for supply can hide enormous variations at different price points. While it is natural that because there are fewer buyers at higher price points houses at these levels take longer to sell, this report quantifies the supply at different price levels in Marblehead, Swampscott, Salem, Beverly and Lynn.
Whether you are a buyer or a seller, it is important to understand the supply today at your price point. For further information, please contact your Sagan Harborside Sotheby’s International Realty agent.
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