Swampscott 2018 Housing Market By The Numbers
[Click here to download a copy of this report.]Single Family Homes (SFH)
The median price of the SFHs sold in Swampscott in 2018 increased 10.5% to a new record of $587,250. Sales recovered, but only to the 2016 level.
Condos
The median price was influenced by the sale of 16 units in the new Avery development. Excluding those, the median price was $329,950, which was still a 12% increase. Sales were a new record, helped by the 16 at Avery.
Andrew Oliver
Realtor, Sagan Harborside
Sotheby’s International Realty
www.andrewJoliver.com
www.OliverReports.com
Tel: 617.834.8205
Sotheby’s International Realty® is a registered trademark licensed to Sotheby’s International Realty Affiliates LLC. Each Office Is Independently Owned and Operated
Housing Headlines for Marblehead and Swampscott
Marblehead
The median price of the Single Family Homes (SFH) sold in Marblehead in 2018 increased 3.7% to a new record of $689,500. Sales dropped to the lowest level since 2011.
Swampscott
After finally breaking the 2005 peak of $517,300 in 2017, the median price jumped 10.8% in 2018. Sales recovered to the 2016 level, but were below the levels of 2013-2015.
Detailed reports on both markets (and several others) will be published in the near future.
Andrew Oliver
Realtor, Sagan Harborside Sotheby’s International Realty
www.OliverReports.com
Andrew.Oliver@SothebysRealty.com
Tel: 617.834.8205
Housing Supply is limited in Marblehead and Swampscott
In my Inventory starts 2019 continuing rising trend article yesterday I commented: While inventory has been increasing steadily for some months, in absolute terms it is still low.
Inventory in New England is always low in the first few months of the year, and activity in the first quarter of the year is very weather dependent, but in this article I show the current inventory (in terms of months of supply*) for Marblehead and Swampscott, as well as for Essex County overall.
Marblehead
Only 3 houses currently for sale under $600,000 and only 18 under $1 million.
Swampscott
Just 10 houses for sale under $1 million.
Essex County
Very limited supply under $1 million.
* a market is generally regarded as being in equilibrium between buyers and sellers when supply is 6 months
Comment
The economy is still strong, if slowing somewhat, and mortgage rates have dropped back to 4.5%.
It is early January and it is New England and winter, but there do seem to be opportunities for sellers in many price ranges.
Andrew Oliver
Realtor, Sagan Harborside Sotheby’s International Realty
www.OliverReports.com
617.834.8205
How is Swampscott’s 2019 Property Tax Rate calculated?
Swampscott has announced that its residential tax rate will drop from $16.00 in Fiscal Year 2018 to $15.20 in FY 2019 (and down from $17.45 in FY 2017).
Commercial and industrial property is surcharged at 170%, as in FY 2018, resulting in a tax rate of $27.45, down from $28.83 in FY 2018 and $32.20 in FY 2017 (when the shift was 175%).
Were a single tax rate to be enacted – meaning that residential and commercial property were taxed at the same rate – that rate would be $16.05 for FY 2019.
How is the rate calculated?
The method of calculating the tax rate is quite simple: take the $ amount of the previous year’s tax levy, add 2.5% for Proposition 2 1/2, and also add any new growth (such as new construction or a condo conversion). This figure is the new maximum tax levy. To this figure is added debt service – the Principal and Interest payable on the town’s debt. Note that in recent years, Swampscott has not assessed the maximum allowed under this formula, a decision that has reduced the tax bill for residents. The average tax bill will decline by $51 in FY 2019, a second consecutive year of decline, after rising in every year since 1994.
Here are the numbers for FY 2017, 2018 and 2019, remembering that the FY runs from July to June.
The Tax Levy calculation
The maximum $ amount that can be raised by the property tax will increase year by year. That is because of the formula: last year’s number plus 2.5% (Prop 2 1/2) plus new growth. In the table above you can see how the FY 2018 maximum tax levy of $48,386,446 becomes the base for FY 2019. Add $1,209,661 for Prop 2 1/2 and new growth of $438,564 to get the new figure of $50,034,671. To this number is added the debt service – Principal and Interest on the town’s debt, much as homeowners pay P&I on their mortgage. Note that the actual tax levy was less than the maximum allowed by just over $1 million in FY 2017, by just over $2 million in FY 2018, and by $3.4 million in FY 2019. In other words, the amount raised through taxes was reduced by these amounts each year.
The Tax Rate
The actual tax rate depends upon the total Assessed Value of all property: residential, and commercial, industrial and personal (CIP). The tax rate is calculated by dividing the total dollar amount to be raised from each class by the Assessed Value of each class. Thus, the headline tax rate will also fluctuate depending upon the direction of Assessed Values.
In simplistic terms, if we assume that the $ amount to be raised increases by a little more than 2 1/2% each year, then if the average Assessed Value also increases by a little more than 2 1/2% the tax rate will be unchanged. If the increase in Assessed Values is less than 2 1/2%, then the tax rate will rise. And if the increase in Assessed Values is more than 2 1/2% then the tax rate will fall. In recent years Assessed Values have been increasing significantly more than 2 1/2% allowing for the tax rate to decline sharply.
Looking at the Swampscott residential tax rate, in FY 2018 it was $16.00, achieved by dividing $42.4 million raised from residential homeowners by the residential AV of $2.65 billion. In FY 2019 the amount to be raised from residential taxpayers is set to increase slightly to $42.6 million, but because the total residential AV increased by 5.7% to $2.8 billion, the headline tax rate dropped sharply to just $15.20, the lowest figure since 2009.
Comment
The residential real estate market in Swampscott has been very strong again in 2018 (and 2018 prices will be the basis for the FY 2020 tax rate). At this stage it looks as though the median price will be around $580,000 (a new high), an increase of over 9% from 2017’s $530,000. But bear in mind this is the median price of the SFHs that will actually sell this year, so does not imply that the Town’s residential Assessed Value will increase by 9%.
As to the tax rate for FY 2020, that depends on a number of factors: the amount of debt service, how much of the maximum tax levy is assessed, and the shift to the CIP class being three of them. But the continuing increase in Assessed Values should allow for the actual rate to decline again in FY 2020..
From a real estate perspective, the substantial decline in the tax rate and the stability in tax bills are both very welcome news and are clearly encouraging more people to decide both to live and work in Swampscott.
www.OliverReports.com
Swampscott’s 2019 Property Tax rate drops sharply – again
The FY 2019 residential property tax rate for Swampscott will drop from $16.00 in 2018 (and $17.45 in 2017) to $15.20 in 2019, the lowest rate since 2009.
The commercial rate will also drop to $27.45, from $28.83 in 2019 and $32.20 in 2017.
For more details and an explanation as to how the rates are calculated read How is Swampscott’s 2019 Property Tax rate calculated?
www.OliverReports.com
Swampscott Q3 Report: Median Price nearing $600,000
[Click here to download a PDF of this report.]The median price of the Single Family Homes (SFH) sold in Swampscott in the first 9 months of 2018 increased 11% to a new record $590,000, while the median condo price, boosted by the new Avery development, increased 19% to $359,000.
SFH Median Price
Through the first 9 months the median price is up 11% from a year ago and 22% from 2017.
After 7 consecutive quarters when the median price exceeded $500,000, Q3 saw the first quarter above $600,000.
SFH Sales
Sales overall recovered somewhat from last year’s drop. The impact of rising prices can be seen by the fact that the proportion of sales under $500,000 dropped from 54% in 2016 to 39% in 2017 and to just 27% in 2018.
Reflecting strong demand and the shortage of inventory, half the sales YTD have taken place at or above list price.
SFH Inventory
As of October 1, overall inventory, while still very low, was quite consistent with the last two years in terms of supply at different price points.
Condos
Traditionally, the condo market in Swampscott has been split between the older developments around Vinnin Squarer and newer, oceanfront units on Humphrey Street. That has changed somewhat with the new Avery development of 42 condominiums on Essex Street. In the first 9 months of 2018, 11 units were sold in Avery at prices between $370,000 and $500,000. These sales added some $27,000 to the median price YTD and contributed to the jump in sales over $350,000 from 20% of the total in 2016 to 52% in 2018.
Reflecting strong demand, three-quarters of sales YTD have taken place at or above list price.
Comment
It took 15 years, until 2017, for the median SFH price to exceed the $517,300 recorded in 2015, but since then the median price has turned on the rocket boosters. The condo market has also seen strong demand, with the new development at Avery giving an upward thrust to the median price.
It remains to be seen if the recent jump in mortgage rates will serve to bring supply and demand more in line in the coming months.
Sagan Harborside Sotheby’s International Realty
www.SaganHarborside.com
Sotheby’s International Realty® is a registered trademark licensed to Sotheby’s International Realty Affiliates LLC. Each Office Is Independently Owned and Operated
Swampscott Q3 2018 Housing Market By The Numbers
[Click here to download a copy of this report.] The median price of the Single Family Homes (SFH) sold in Swampscott in the first 9 months of 2018 increased 11% to a new record $590,000. Sales recovered somewhat from last year’s drop.
Condos
As reported previously, sales at the new Avery development have had a major impact on the overall median price. YTD there have been 11 sales at Avery between $370,000 and $500,000, adding $27,000 to the YTD overall median price, which increased 19% from 2017.
Sagan Harborside Sotheby’s International Realty
www.SaganHarborside.com
Sotheby’s International Realty® is a registered trademark licensed to Sotheby’s International Realty Affiliates LLC. Each Office Is Independently Owned and Operated
Housing inventory: what a difference price makes
Yesterday’s report Housing inventory: town by town guide showed that the overall supply of Single Family Homes (SFH) in Essex County was 2.8 months, whereas a market is regarded as being in equilibrium between buyers and sellers when there is 6 months of supply.
But as this report shows, an overall figure for supply can hide enormous variations at different price points. While it is natural that because there are fewer buyers at higher price points houses at these levels take longer to sell, this report quantifies the supply at different price levels in Marblehead, Swampscott, Salem, Beverly and Lynn.
Whether you are a buyer or a seller, it is important to understand the supply today at your price point. For further information, please contact your Sagan Harborside Sotheby’s International Realty agent.
Sagan Harborside Sotheby’s International Realty
www.SaganHarborside.com
Sotheby’s International Realty® is a registered trademark licensed to Sotheby’s International Realty Affiliates LLC. Each Office Is Independently Owned and Operated
Swampscott Brick Beauty within sound of the ocean
Just 250 yards from the entrance to Phillips Beach, close enough to hear the waves crashing, but far enough away to benefit from lower taxes than on neighboring houses which have Assessed Values up to $3 million.
This remarkable custom home offers:
- 4 bedrooms, 2 full, 2 half baths.
- A spacious, elegant foyer leading to a large chef’s kitchen with island and casual eating area.
- Beautifully appointed rooms, lovely curved staircase, family room with fireplace, large media room with coffered ceiling, stunning open living/dining room, and multiple decks.
- An exquisite master bedroom/bathroom suite, 2 additional spacious bedrooms and office/4th bedroom, guest bathroom, exercise/laundry room, and back staircase.
- Finished lower level with half bath, steam shower. Heated two-car garage. New heating system (2018) and roof (2016).
- Beautiful landscaping, circular paved driveway, and fully fenced in yard. We can’t wait to welcome you to this gorgeous property!
A home to match your lifestyle!
Click 34 Phillips Beach for more photos.
Open Houses: Saturday, September 15 and Sunday, September 16, both days from 11:00 to 12:30.
Contact Cathy Shulkin 781.710.4261 or Hope Zabar 617.281.2116 for more details or to arrange a private showing.
Sagan Harborside Sotheby’s International Realty
www.SaganHarborside.com
Sotheby’s International Realty® is a registered trademark licensed to Sotheby’s International Realty Affiliates LLC. Each Office Is Independently Owned and Operated
Swampscott Mid-Year 2018 Housing Market Report
(Click here to download a PDF of this report.)
The recent strong growth in the median price of the Single Family Homes (SFH) sold in Swampscott continued in the first half, with the median price increasing by 7% from a year ago to $577,750.
While quarterly prices can and do fluctuate, the median price has now exceeded $500,000 for seven consecutive quarters.
SFH Sales
After a sharp drop in 2017, sales recovered in 2018 to the levels of 2014-2016.
Sales by Price
The increase in the median price can also be demonstrated by the fact that the percentage of houses that sold for less than $500,000 dropped from 51% in 2016 to 32% in 2017 and to just 27% in 2018.
Of the 73 sales, 11 took place at list price and 28 above list price.
SFH for sale
As of July 1, there were just 7 houses for sale in Swampscott under $600,000. At the other end of the scale there were 9 for sale over $1.5 million, while there were only 2 sales at that level in the first half of the year. Notably, one of those sales occurred at $7.7. million, one of only 10 sales over $7.5 million in Essex County in MLS records, and almost double the previous highest price recorded in Swampscott.
Condos
As we saw in Beverly with Elliot Landing, a large new development can have a major impact on the reported median price since new developments are usually of higher-priced units. The 42 units at Avery will have a similar impact on the median price in Swampscott. In the first half of 2018 there were 9 sales recorded at Avery at prices from$370,00 to $500,000. Without the Avery sales, the median price for the first half would have been $299,900.
Sales by Price
Without the Avery sales the percentage of sale under $250,000 would have been 20%, down from 43% in 2016.
Condo for Sale
The MLS numbers for July 1 include only 2 units at Avery, although there are 21 currently available.
Summary
It took 12 years for the median SFH price to beat the $517,300 achieved in 2005, but that figure has now been put firmly in the rear view mirror. With only 13 of 30 pending SFH sales at list prices under $600,000, and just 7 of the 30 SFHs for sale listed under $600,000, there is every chance that the median price will top $600,000 in the second half of 2018. Meanwhile, Avery continues to transform the condo market in Swampscott.
Sagan Harborside Sotheby’s International Realty
Swampscott Oceanfront sale eclipses previous record
The sale of 25 Rockyledge Road in Swampscott closed this week at $7.7. million, nearly double the price of the previous highest MLS sale in Swampscott – the house next door – which sold in 2013 for $3.95 million.
25 Rockyledge is a one of a kind house – at a one of a kind price.
But agents are reporting that there has been a lot of activity at the higher end recently, a good sign as we head into spring.
If you – or somebody you know – are considering buying or selling a home and have questions about the market and/or current home prices, please contact Andrew Oliver on 617.834.8205 or Kathleen Murphy on 603.498.6817.
If you are looking to buy, we 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?
Andrew Oliver and Kathleen Murphy are Realtors with Sagan Harborside Sotheby’s International Realty. Each Office Is Independently Owned and Operated
@OliverReports
Pending $8 million sale in Swampscott
A 14,000 sf contemporary house, sitting on an acre of ocean top land, and listed for sale at $7.995 million, has just gone under agreement in Swampscott.
Assuming the sale goes through at some proximity to the list price, this sale will eclipse the previous record MLS sale in Swampscott of $3.95 million – for the house next door.
And the new owner is clearly not put off by the change in the deductibility of property taxes: they will come in this year at $114,411.
If you – or somebody you know – are considering buying or selling a home and have questions about the market and/or current home prices, please contact Andrew Oliver on 617.834.8205 or Kathleen Murphy on 603.498.6817.
If you are looking to buy, we 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?
Andrew Oliver and Kathleen Murphy are Realtors with Harborside Sotheby’s International Realty. Each Office Is Independently Owned and Operated
@OliverReports
Swampscott market surges to new high in 2017
(Click here to download a pdf of this report.)
The median price of the Single Family Homes (SFH) sold in Swampscott in 2017 jumped $42,000, or 8.6%, to a new high of $530,000, finally surpassing the prior 2005 peak of $517,300. Sales, however, reflecting the low inventory all year, dropped to 135 from 157 in 2016 and 183 in 2015.
Median price
The first chart shows median prices since 2000. I find it helpful to look at longer term trends and this chart shows how prices – which had already risen for some years prior to 2000 – jumped sharply in the early years of the millennium, with a spike in 2005, and dropped during the Great Recession. Prices have been moving upwards for the last three years.
Source:Oliver Reports
The future of the Marian Court site? $2 million condos
According to this Swampscott Reporter article White Court, the former summer home of President Calvin Coolidge and more recently the site of Marian Court College, has been sold to four Swampscott developers who plan to build 18 condos on the 6.2 acre site.
Wicked Local: Greg Phipps
The project is zoned as an independent living facility, which means that it’s restricted to people age 55 years and older with no children.
How is Swampscott’s 2018 Property Tax Rate calculated?
In my Swampscott’s tax rate goes down – and so do tax bills!! post this week I promised to write another article explaining exactly how the tax rate was calculated. This is it.
The formula is actually very simple: take the $ amount of the previous year’s tax levy, add 2.5% for Proposition 2 1/2, and also add any new growth (such as new construction or a condo conversion). This figure is the new maximum tax levy. To this figure is added debt service – the Principal and Interest payable on the town’s debt. Note that in recent years, Swampscott has not assessed the maximum allowed under this formula, a decision that has reduced the tax bill for residents. And in fact the average tax bill will decline in FY 2018 for the first time since FY 1994!
Here are the numbers for FY 2016, 2017 and 2018, remembering that the FY runs from July to June.
The Tax Levy calculation
The maximum $ amount that can be raised by the property tax will increase year by year. That is because of the formula: last year’s number plus 2.5% plus new growth. In the table above you can see how the FY 2017 maximum tax levy of $46,604,909 becomes the base for FY 2018. Add 2.5% and new growth and the new figure is $48,386,446. To both these numbers is added the debt service – Principal and Interest on the town’s debt, much as homeowners pay P&I on their mortgage. Note that the actual tax levy was less than the maximum allowed by just over $1 million in FY 2017 and by just over $2 million in FY 2018. In other words, the amount of taxes raised was reduced by these amounts each year. Note also that the debt service figure for FY 2018 has dropped by over $0.8 million.
The Tax Rate
The actual tax rate depends upon the total Assessed Value of all property: residential, and commercial, industrial and personal (CIP). The tax rate is calculated by dividing the total dollar amount to be raised from each class by the Assessed Value of each class. Thus, the headline tax rate will also fluctuate depending upon the direction of Assessed Values.
In simplistic terms, if we assume that the $ amount to be raised increases by a little more than 2 1/2% each year, then if the average Assessed Value also increases by a little more than 2 1/2% the tax rate will be unchanged. If the increase in Assessed Values is less than 2 1/2%, then the tax rate will rise. And if the increase in Assessed Values is more than 2 1/2% then the tax rate will fall.
Looking at the Swampscott residential tax rate, in FY 2017 it was $17.45, achieved by dividing $42.7 million by the residential AV of $2,447 million. In FY 2018 the amount to be raised from residential taxpayers is due to drop slightly to $42.4 million, but because the total residential AV increased by 8.3%, the headline tax rate dropped sharply to just $16.00, the lowest figure since 2009.
How does debt service affect the tax rate?
The announced property tax rate announced each year includes the cost of debt service. One of the factors cited for the decline in the tax rate for FY 2018 is the reduction in the cost of debt service, something which the Town warns may be temporary. The impact on the tax rate can be seen in the table below:
Comment
The residential real estate market in Swampscott has been very strong in 2017 (and the 2017 median price will be the basis for the FY 2019 tax rate). At this stage it looks as though the median price will be around $525,000 (a new high), an increase of over 7% from 2016’s $488,000. But bear in mind this is the median price of the SFHs that will actually sell this year, so does not imply that the Town’s residential Assessed Value will increase by 7%.
As to the tax rate for FY 2019, that depends on a number of factors: the amount of debt service, how much of the maximum tax levy is assessed, and the shift to the CIP class being three of them. But he continuing increase in the average Assessed Value will moderate any increases in other areas.
From a real estate perspective, the substantial decline in the tax rate and the reduced shift to the commercial sector are both very welcome news and should encourage more people to decide both to work and live in Swampscott.
If you – or somebody you know – are considering buying or selling a home and have questions about the market and/or current home prices, please contact Andrew Oliver on 617.834.8205 or Kathleen Murphy on 603.498.6817.
If you are looking to buy, we 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?
Andrew Oliver and Kathleen Murphy are Realtors with Harborside Sotheby’s International Realty. Each Office Is Independently Owned and Operated
@OliverReports
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