Salem 2016 Housing Market: record prices and sales
In 2016 the median price of a Single Family Home (SFH) in Salem increased by $21,000, or 6%, to $370,000, a new record high. Sales jumped 16% to a new high while the average number of houses for sale dropped slightly, indicating that houses sold very quickly. I shall publish a separate report on the equally buoyant condo market.
Median price*
The first chart, with the numbers below, shows the median price for the two halves of the year and for the full year.
Source: MLS, Oliver Reports
Salem Q3 2016 Housing Market Summary
Through the Third Quarter, the median price of a Single Family House (SFH) in Salem rose 3% to a new high of $370,000, while that for a condo rose 4% to $280,000, also a new record.
Source: MLS, Oliver Reports; peak in bold
If you are considering selling your home please contact me on 617.834.8205 or [email protected] for a free market analysis and explanation of the outstanding marketing program I offer.
Not sure which broker to use to sell your home? Read Which broker should I choose to sell my 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.
Andrew Oliver is a Realtor with Harborside Sotheby’s International Realty. Each Office Is Independently Owned and Operated
@OliverReports
Salem Mid-Year Review: Condo Market sizzling
Condo sales have sizzled this year, up 45% in the first half from a year ago, and up 60% over the average for the first half for the last 5 years. Current inventory represents less than 2 months of supply based on sales in the second quarter, and is about equal to the number sold in the month of June alone.
Median prices* have not – at least as yet – responded to this imbalance between supply and demand, with a modest increase of just under 4% in the first half to $280,000, a new record for the first half (the highest annual median price is$279,000 in 2005, so there is a good chance that 2016 will set a new record high.)
Sales of Single Family Homes (SFH) also jumped sharply, up 30% from a year ago, and almost matched the prior high. The median price of a SFH increased 6.5% to a new record of $380,000 (the highest annual median price is $349,450 in 2015, so it looks certain that 2016 will see that record well beaten.) (more…)
Housing supply even tighter than a year ago
The supply of houses and condos for sale in North Shore towns, as well as throughout Essex County and Massachusetts, is down from last year’s levels – which were themselves low.
Housing markets are generally regarded as being in equilibrium between sellers and buyers when the supply of houses for sale is equal to the number that would be sold in 6 months. So a housing supply of 6 months represents equilibrium; more than 6 months means the supply is high enough to favor buyers; less than 6 months the lack of supply favors sellers – what is known as a sellers’ market.
The following tables show the numbers for 2016 in the left column and 2015 in the right one.
Single Family Homes (SFH)
Overall supply in both Essex County and Massachusetts is less than 4 months and down from a year go. In individual towns, only Marblehead has a slight increase in supply, but the number remains below 6 months:
Condos
The condo market is even tighter with supply of less than 3 months in Essex County and Massachusetts, and all areas showing a decline from this time a year ago.
Source: MLS, Oliver Reports
Comment
This analysis shows the overall markets. There will be differences at differing price points, but because higher-priced houses usually take longer to sell, that means supply at the lower prices is even less than shown.
The housing market here may not be crazy, but clearly there is less supply than buyers would like.
If you are considering selling your home please contact me on 617.834.8205 or [email protected] for a free market analysis and explanation of the outstanding marketing program I offer.
Read Which broker should I choose to sell my 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.
Andrew Oliver is a Realtor with Harborside Sotheby’s International Realty. Each Office Is Independently Owned and Operated
@OliverReports
Salem Q1 Housing Market by the Numbers
This report gives a picture of the Salem Q1 Housing Market by the Numbers, followed by a snapshot of current inventory compared with a year ago.
Median Prices and Sales
Sales of SFHs were up slightly from last year, but sales of condos rose sharply. The median price of a SFH was slightly lower than a year ago, while that for condos was up. Always remember that quarterly numbers can be – and frequently are – volatile, especially during the winter months. We will get a truer picture of the underlying market trends when we get the numbers for the first half of the year.
Source: MLS, Oliver Reports
Current Inventory
While inventory is down somewhat compared with a year ago, the drop is quite modest.
Source: MLS, Oliver Reports
If you are considering selling your home please contact me on 617.834.8205 or [email protected] for a free market analysis and explanation of the outstanding marketing program I offer.
Read Which broker should I choose to sell my 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.
Andrew Oliver is a Realtor with Harborside Sotheby’s International Realty. Each Office Is Independently Owned and Operated
@OliverReports
5 Non-Halloween facts about Salem
Boston.com’s Living in Salem article highlights 5 non-Halloween facts about Salem:
1. The historic features of Salem
2. Property prices are much lower than in Greater Boston
3. Salem is on the water and offers plenty of water-based activities
4. Salem has a low student to teacher ratio in its schools
5. The Derby Street waterfront area, which offers just about everything (more…)
Salem welcomes Cruise Ship
When I first heard Salem Mayor Kim Driscoll talk of cruise ships coming in to the old Salem power plant wharf I was surprised and frankly sceptical. But this week Salem welcomed its second cruise ship, the Fred Olsen line’s Balmoral, a 750 ft vessel carrying 1,300 passengers.
Today’s Open House list
Mortgage rates are under 4%, unemployment has dropped to 5.1% – it’s a great time to check out these Open Houses. (more…)
New Listings before Labor Day
Here are the week’s new listings, in summary: (more…)
Today’s Open Houses
The most notable aspect of this list is the relatively high number of SFHs in Swampscott – a market which has experienced very limited inventory this year – where today’s Open Houses range in price from $330,000 to $1.7 million. (more…)
New Listings as languid as the weather
The number of new listings continues to decline: (more…)
Open Houses tailing off
Here are today’s Open Houses together with a chart showing that the number today, in Marblehead, Salem, Beverly and Swampscott, is a little over half the number just two weeks ago: (more…)
New Salem power plant:Construction underway
As this Old Salem power plant falls as new one rises Marblehead Reporter article points out, construction is well underway on the new, quick and clean, gas-fired Salem power plant, which will occupy just 24 of the 65 acre site.
Two of the three smokestacks of the old coal plant are already down and the last – and highest at 480 feet – will be coming down shortly. (more…)
Salem condo supply jumps
Salem is a hot city with lots of good things happening there, especially for young people who are buying condos. So far this year the median condo price has increased by more than 10%. This trend has naturally attracted developers and others resulting in a sharp increase in the supply of condos for sale in the last couple or months, as shown in this chart (1 – Jan 1, 2 = Feb 1, etc, 7 = Jun 27): (more…)
Housing Inventory still down heading to July 4
As we head towards July 4th, often the target date for home buyers wanting to be in their new homes for the start of the school year, housing inventory remains well down from a year ago. (more…)
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