Housing market: buyers moving up the price chain
In addition to looking at total sales and median prices I like to look at the breakdown of sales at different price levels. At this stage in the housing market recovery one would expect to see buyers trading up and increasing demand for prices at higher levels.
Although the first quarter in Massachusetts typically sees low sales, the breakdown of them does suggest a trend that I will be watching carefully as we move into the spring and summer.
First, sales in Marblehead. Note the drop in sales under $500,000 and the big jump in sales over $1 million.
Source: MLS, Oliver Reports
Beware first quarter housing market reports
Another one for the “Lies, Damned Lies and Statistics” file. (And I hope another reason to read my blog regularly to avoid being mislead.)
You may well see a report saying that the median price in Marblehead increased 19% from last year, which is the MLS figure including all sales. My numbers, which always exclude distressed sales, show a 17% increase. But it is important to know that quarterly numbers vary greatly.
Look at these numbers for Marblehead since 2010. They clearly show that Q1 2013 was well below the rest of the year. I am not saying that the Q1 number is not significant (see Buyers moving up the price chain). Just beware that Q1 a year ago was generally a low quarter.
Source: MLS, Oliver Reports
Housing inventory remains tight heading into Spring
With Spring rumoured to be coming soon (please!) here’s a look at the inventory awaiting buyers.
First Single Family Homes (SFHs). Although supply is a little higher than a year ago in actual numbers, it is slightly lower in terms of months of supply because the rate of sales increased over the last year. For the whole of Essex County supply is just under 3 months, or half the level regarded as a market in equilibrium between buyers and sellers.
The cold winter not only kept buyers indoors but also made it more difficult for sellers to get their houses ready for sale. The economy is improving, albeit still slowly, economic confidence seems to be improving, the stock market is at a high, and the likelihood is that mortgage rates will increase. Coupled with growing awareness that home prices are improving, I believe that 2014 could be a strong year for home prices on the North Shore. (more…)
Two free Marblehead concerts: Sergey Schepkin and Brahms Requiem
For my 200th blog post, I would like to draw your attention to two extraordinary musical offerings coming up shortly. Both will take place at Old North Church, 35 Washington Street , on Saturday, April 5 and Sunday, April 13.
Saturday, April 5 at 8:00 p:m: International pianist Sergey Schepkin will perform works by Bach, Schumann, Debussy and others in a concert to celebrate the restoration of Old North’s Steinway B piano. 
Read Restoration of a Steinway in Marblehead from the Marblehead Reporter.
And on Palm Sunday, April 13 at 7 p.m., the Old North Festival Chorus will perform the rarely heard Brahms Requiem. Written by Brahms after his mother’s death, this Requiem is not the traditional Latin liturgy celebrating the dead, but a full-bodied and full-blooded German celebration of the living. It is a work of epic proportions and this is an incredible musical offering, also free to the public. 
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 781.631.1223 or andrew@HarborsideRealty.com. Andrew Oliver is a Realtor with Harborside Realty in Marblehead
Housing inventory: spring is coming, right?
Two years ago the month of February saw just one day when the temperature was below freezing. This year….well you know what’s it been like, hibernation for most of the month. Statistics for sales at this time of year are, therefore, largely meaningless.
Instead, I have been looking at the supply of houses and condos for sale and comparing numbers with a year ago, which was also a cold month if not quite as brutal as this year.
We are assured that it will warm up one day, if not soon. With signs that the economy continues to improve, if slowly, it seems quite likely that spring, if and when it comes, will find buyers chasing limited inventory, again, and that prices, certainly at the lower end, will continue the improvement of 2013.
Here is the inventory by price for Marblehead, Beverly, Salem, Swamspcott and Essex County overall. (more…)
Essex County 2013 Housing Market Reports and 2014 Outlook
In 2013 the median price of a Single Family Home (SFH) in Essex Country increased 6% to a level just 6% below the peak of 2005, while sales continued the strong recovery of the last two years, and were 9% below 2004’s peak. This is in contrast to the condo market – click here for my Essex County 2013 condo report – where sales in 2013 were still almost 40% below peak levels, although the median price is now just 2% below the peak
Sales
Sources: MLS, Oliver Reports
Distressed sales – foreclosures and short sales – dropped from 17% of all sales in 2011 to 8% in 2013. Non-distressed sales increased 19% in 2013.
(more…)
Essex County 2013 Condo Market Review and 2014 Outlook
The condo market in Essex County did not experience a big crash, with prices falling just 14% from their 2005 peak to 2009 low. Since then prices have recovered steadily and in 2013 were just 2% below peak levels. Sales, however, remain well below peak levels. (Click here to read my Essex County 2013 Single Family report.)
Sales
Sales numbers suggest that Essex County did enjoy some sort of condo boom in the middle years of the first decade of this century, before experiencing a very large slump. No doubt part of the reason that sales remain low is that the once popular small apartment conversions have become hard for buyers to finance, and that market shows very little sign of returning.
- Sources: MLS, Oliver Reports
Distressed sales – foreclosures and short sales – accounted for fully 26% of all condo sales in 2011, dropping back to just 10% in 2013. Non-distressed sales have shown a sharp increase in the last two years. (more…)
Do buyers go out in the cold? 160 visitors to one Open House.
People often assume that the cold weather keeps buyers indoors, but last Sunday 160 visitors showed up at a Harborside Open House in Danvers.
Now, I’m not saying people will go out in a howling nor’easter, but clearly buyers are out there! Supply is low, so if you are planning to sell, now is a good time to come to market.
If you are considering buying or selling a home and have questions about the market and/or current home prices, feel free to contact me on 781.631.1223 or andrew@HarborsideRealty.com.
Andrew Oliver is a Realtor with Harborside Realty in Marblehead
How will a wind turbine affect my home’s value?
A recent study Relationship between Wind Turbines and Residential Property Values in Massachusetts by the University of Connecticut and the Lawrence Berkeley National Laboratory analyzed more than 122,000 home sales between 1998 and 2012 occurring near the current or future location of 41 turbines in densely-populated Massachusetts communities.
While “weak evidence suggests that the announcement of the wind facilities had a modest adverse impact on home prices….. those effects were no longer apparent after turbine construction and eventual operation commenced. The analysis also showed no unique impact on the rate of home sales near wind turbines.” The study “found no net effects due to the arrival of turbines in the sample’s communities.” (more…)
The best time to buy or sell a home in Massachusetts
(Note: this article was updated in February 2016 at When is the best time to buy or sell a home in Massachusetts?)
Ok, I know, you don’t own a home – or are not thinking of buying a home – in “Massachusetts” but in Marblehead, or Swampscott, or Salem or Beverly.
But… as a commentator on a blog article I wrote last year pointed out, it is always useful to know what is going on beyond one’s immediate neighborhood. That may mean the state of the economy, which will affect mortgage rates, or geopolitical developments, which affect general confidence.
We all spent 2013 reading of bidding wars and dire warnings of “a new bubble”. I freely admit to greeting bubble warnings with disdain, even with that well known refuge of the desperate – or at least the British – sarcasm.
Well, the results are in: the housing “bubble” in Massachusetts in 2013 produced just a 5% increase in the median price of a Single Family Home (SFH), as sales increased by 8%. Bubble? I don’t think so. (more…)
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