Beverly 2015 Housing Market Review
This Beverly 2015 Housing Review covers the Single Family Home (SFH) market. In 2015 sales increased 5% to tie the record level of 2004, while the median price improved 6% to a new record $403,000, topping the prior peak of $400,000 in 2004.
The 6% increase in the median price in 2015 took the Beverly SFH market to a new high.
Perhaps the most interesting aspect of the market in 2015 ( at least to a numbers person) was the consistency of prices in each quarter of the year – highly unusual (but not significant).
One way I measure prices is by the ratio (ASR) of Assessed Value (AV) to Sales Price (SP). The ASR is the AV divided by the SP: if the SP is rising (prices going up), the ASR will fall.
In recent years the ASR has been falling, indicating rising prices. The 2015 ASR of 84.9% shows that the median SFH in 2015 sold at a premium of 18% (100/84.9 – 1) to Assessed Value.
A 5% increase in sales and a 6% increase in median prices are indications of a healthy real estate market in Beverly. With the Massachusetts economy strong – and GE’s move to Boston can only help – and with mortgage rates close to record lows, the outlook for 2016 is for a market continuing to show modest price increases.
*Properties selling above their AV will have an ASR below 100%. What this means is that in a period of rising prices the ASR is likely to be falling. So what we, as homeowners, want is an ASR below 100% and falling.
Remember that AVs are a lagging indicator: the tax bills for FY2016 are based on actual sales in 2014. Thus the 2015 sales data, reported in this review, will be the basis for FY2017 assessments.
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 617.834.8205 or Andrew.Oliver@SothebysRealty.com.
Andrew Oliver is a Realtor with Harborside Sotheby’s International Realty. Each Office Is Independently Owned and Operated
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