Marblehead housing market now

The Single Family Home (SFH) market
The market in Marblehead continues to be quite active, with 15 Single Family Homes (SFHs) having received accepted offers already in October, compared with 21 in the whole of October 2013. New sales in September also showed a sharp increase over 2013, more than making up for the drop in August.

The first chart shows quarterly numbers for median prices for the last few years. The Q3 number is not a record. The YTD through September median price is $585,600 so for the full year we will end up very close to, or slightly higher than, the record of $585,000 set in 2006. It may come down to which of the houses under agreement actually closes before year end:

Source: MLS, Oliver Reports
Source: MLS, Oliver Reports

The current composition of houses available for sale shows an increase in supply at the lower end of late and also in the $1-2 million bracket. Both these segments have been active this year.

Source: MLS, Oliver Reports

Source: MLS, Oliver Reports

Looking at what has sold this year, note that sales from $500-749k have exceeded those under $500,000, a reversal of last year’s relationship, showing both that prices are increasing and buyers moving up.

Source: MLS, Oliver Reports

Source: MLS, Oliver Reports

The Condo Market
The condo market looks likely to emulate the SFH market ending 2014 very close to the 2007 peak of $346,000, as through 9 months the median price was $347,750:

Source: MLS, Oliver Reports

Source: MLS, Oliver Reports

It is important to remember that the law of small numbers applies to condos in Marblehead. For example, sales to date in the $3-400k range (which will determine the year’s median price) and the gaps between sales have been as follows:

Source: MLS, Oliver Reports

Source: MLS, Oliver Reports

The median through 9 months is the average of $328,000 and $367,500, or $347,750. One more sale outside these prices would move the median price by almost $20,000. This is why I comment on prices in the condo market on a semi-annual rather than quarterly basis.

Talking of sales, here are the numbers for the first 9 months of 2014 compared with 2013 and broken down by price range. The increase in the $500-749k range was what drove the increase in the median price.

Source: MLS, Oliver Reports

Source: MLS, Oliver Reports

There is little change year over year in condos available for sale.

Source: MLS, Oliver Reports

Source: MLS, Oliver Reports

But look at the change over the last ten years:

Source: MLS, Oliver Reports

Source: MLS, Oliver Reports

Marblehead is not only  a small market for condos, but that market is split between a small number of purpose built condos and the  HGTV-driven boom in “condo conversions”  of older 2-4 unit apartment buildings. It is the latter market which has largely disappeared.

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. Sotheby’s International Realty® is a registered trademark licensed to Sotheby’s International Realty Affiliates LLC.  Each Office Is Independently Owned and Operated

 

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