Housing Supply by Price in North Shore Towns
Conventional wisdom is that a market is in equilibrium between buyers and sellers when the current inventory represents 6 months of sales. Currently, as shown in the tables below, the overall inventory of Single Family Homes (SFH) in the 34 cities and towns of Essex County represents just 3.1 months of supply, indicating that the market still favours sellers.
But overall numbers can disguise large differences in supply at different price points. The first table shows two supply numbers: in Marblehead, Swampscott and Beverly for prices under $750,000 and for prices above that level; in Salem, Lynn and Essex County overall the numbers are for prices under $500,000 and for prices about that level.
Notice how supply increases dramatically at higher price points. The following tables for individual towns break down that supply further.
The market comes into equilibrium above $600,000 and favours buyers above $1.5 million. Note that generally higher priced houses take longer to sell and also often see higher sales in summer months.
Supply remains extremely tight – and light – under $1 million.
The Salem market remains very tight. It has a small number of higher priced homes but these too are selling well.
Very low supply up to $750,000 and still very tight until prices get over $1.5 million.
Lynn’s market under $500,000 – 94% of sales YTD – is extremely tight.
Supply remains low up to $750,000.
Market Analyst | Team Harborside | teamharborside.com
Sagan Harborside Sotheby’s International Realty
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