Beverly Mid-Year Housing Review: 9% price increase
After breaking through the $400,000 level for the median price* of a Single Family Home (SFH) in 2015 for the first time, the first half of 2016 saw a sharp 9% increase to a new high of $438,250.
In my Q1 review I wrote:”The median SFH price in Beverly is around $400,000. A year ago there were 19 houses available below this level, but today there are just 7. A similar pattern is seen in condos, where the median price is around $250,000. The number of condos for sale below this level is half that of a year ago.”
The reduction in inventory of lower-priced houses continues and is detailed later in this report. At some point, when demand exists as it does today, the lack of inventory at lower prices will translate into higher prices, as it now has in Beverly.
Low inventory + low mortgage rates + buyers looking = higher prices.
The condo market has also seen shrinkage in inventory at lower prices, although as yet this has produced only a 4% increase in the median price.
Single Family Homes (SFH)
Here is the chart of half-yearly median prices for the last 5 years, followed by a table showing quarterly numbers.
SFH Sales by price
Sale of SFHs were the best since 2004. Sales under $400,000 dropped from 48% of the total to 42%, while sales between $600,000 and $1 million increased from 11% of the total to 19%.
Sales in the first half of 2016 were fairly consistent with the last few years and the median price increased by 3.7% to $242,750, still slightly below the 2005 peak of $245,000. But the big story is inventory – or rather lack of inventory.
Condo Sales by price
There was a modest change in the sales pattern, with slightly fewer sales under $250,000 and slightly more in the $250-299,000 bracket, consistent with the small increase in reported median price.
While the number of SFHs for sale is almost identical to that of a year ago, there has been a bigger drop since 2014 – and that drop is most noticeable under $400,000, where the number available has gone from 22 in 2014 to just 11 today.
The condo market has seen greater shrinkage, with just 7 condos for sale under $250,000, down from 20 two years’ ago.
Beverly Main Streets is revitalizing downtown with its slogan: “making downtown a great place to live, work, invest and experience.” Add in Colleges, waterfront, the Cummings Center and the rural quiet of Beverly Farms – and it is easy to see why people are moving to Beverly.
With the small number of houses and condos for sale, low mortgage rates and strong demand, the outlook is for further improvement in the market in Beverly.
*In all my reports and analyses, median price calculations exclude distressed sales – foreclosures and short sales, which typically occur at a significant discount to the normal market.. When I report on “sales” I refer to all sales, including distressed ones.
If you are considering selling your home please contact me on 617.834.8205 or Andrew.Oliver@SothebysRealty.com for a free market analysis and explanation of the outstanding marketing program I offer.
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