North Shore Inventory remains low
This report covers the Single Family Home (SFH) market for Swampscott, Salem, Beverly and Lynn. It follows my already published Marblehead inventory: no Fall increase report. This coming weekend I shall publish reports on the inventory for Essex County as a whole and for condos.
Swampscott
Swampscott’s inventory is down only slightly from 2016 but by one-third since 2015:
Source: andrewJoliver.com
The next chart shows the inventory by price. Note the huge decline under $500,000.
One more chart, showing inventory below and above $1 million. While the total number of SFHs for sale under $1 million has more than halved over 2 years, the number over $1 million has increased slightly.
Salem
While Salem is mainly a condo town, there is also a robust market for SFHs. The number of SFHs for sale has dropped by over a quarter in the last two years.
The main decline has naturally been at the lower end. The number of SFHs for sale under $400,000 has almost halved from 25 in 2015 to 14 in 2017.
Beverly
The Beverly SFH has been extremely strong and the number of SFHs for sale has dropped by almost 40% over the last two years.
The median price of a SFH in Beverly broke $400,000 for the first time in 2015 and has jumped sharply since then. The number of SFHs for sale under $400,000 has plummeted form 22 in 2015 to just 4 now.
Lynn
Lynn has seen an extremely active market in the last few years with a lot of rehabbed properties on the market. Inventory has actually picked up as the year has gone on, with supply rising with demand.
The median price of a SFH in Lynn in 2017 will break through $300,000 for the first time. The number of SFHs for sale under $300,000 has collapsed from 67 in 2015 to just 17 today.
Comment
The numbers for the four towns in this report tell a consistent story of strong demand and low inventory, a combination which leads inevitably to rising prices, which is what we are seeing strongly this year.
Fall Season Starts as Strong Sellers’ Market
A market is generally regarded as being in equilibrium when there is enough supply to accommodate 6 months of sales. When there is less than 6 months of supply it is called a sellers’ market – i.e. the market favors sellers rather than buyers.
Here is the current situation based upon sales Year to Date (YTD).
Source: MLS, Oliver Reports
The numbers above are for the markets at all price points. In general there is more supply at higher price points, meaning that the market for buyers at lower price points is even tighter than these figures imply.
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 [email protected] 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
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