Housing Supply By Town By Price
I have written before about the difference in supply at different price points. This article examines the supply of Single Family Homes (SFH) by price as at November 1 for Marblehead, Swampscott, Beverly, Sale, Lynn, and for Essex County overall.
A market is generally considered to be in equilibrium between buyers and sellers when the number of properties for sale – the supply – is equivalent to 6 months of sales. When supply is under 6 months it is considered to be a sellers’ market; more than 6 months and it is a buyers’ market.
But the overall figure for a market can disguise a wide range between properties at different price points – as the following tables demonstrate.
The pattern is shown here, as the supply increases – dramatically – as prices rise.
The same story.
Salem doesn’t really have a top end to the same extent as the other towns so this is effectively a strong sellers’ market at all price points.
A very tight market.
A simple rule of statistics is the bigger the number the more reliable the statistic. Thus, the numbers for Essex County as a whole are the most significant, and clearly underline the story from individual towns.
While there is truth in the cliche that “all real estate is local”, it is also true that broader trends, not just in terms just of home sales, but also of consumer confidence,economic outlook and mortgage rates, can give insight into where local markets are heading.
With the economy continuing to show steady growth, mortgage rates close to historic lows, and low inventories, the outlook for the North Shore market continues to be for steady, not spectacular, growth as we head into the election year, particularly if consumer confidence remains strong.
Market Analyst | Team Harborside | teamharborside.com
Sagan Harborside Sotheby’s International Realty
One Essex Street | Marblehead, MA 01945
Sotheby’s International Realty® is a registered trademark licensed to Sotheby’s International Realty Affiliates LLC. Each Office Is Independently Owned and Operated