Salem Third Quarter Housing Review

The Single Family Home (SFH) market
The market continued to improve in Q3 and it looks like the full year to be very close to, or even slightly exceed, the previous high of $349,000 in 2005:

Salem_SFH_Median_2010_2014

Consistent with a market of rising prices, sales dropped in the lowest bracket and increased above that:

Source: MLS, Oliver Reports

Source: MLS, Oliver Reports

Supply is little changed compared with a year ago:

Source: MLS, Oliver Reports

Source: MLS, Oliver Reports

The condo market
After a few years of relatively stable prices, the median price for 2014 looks set to increase to around $250,000, but this would still be some 9% below the peak of $279,000 in 2005:

Source: MLS, Oliver Reports

Source: MLS, Oliver Reports

Sales in Q3 were down a bit, mainly in the $200-349k bracket:

Source: MLS, Oliver Reports

Source: MLS, Oliver Reports

As with other communities we are seeing a drop in supply at the lowest level and an increase at higher prices:

Source: MLS, Oliver Reports

Source: MLS, Oliver Reports

Summary
The closing of the Salem Power Plant and the opening of the new MBTA garage can only benefit  Salem. The housing market has seen tight supply for some time. Salem remains an attractive destination, especially for the young, and the market should reflect that fact, along with the improving economy and lower mortgage rates.

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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