Housing Supply by Town and by Price
A housing market is generally regarded as being in equilibrium between buyers and sellers when the number of properties for sale is equal to 6 months of sales. But figures for a market overall can disguise major differences between supply at different price points. This report analyses the supply by price as of October 1 for Marblehead, Swampscott, Salem, Beverly and Lynn; and for Essex County.
First, the overall market. In each of these, supply favors sellers as it is less than the 6 months which indicate a balanced market.
Now let’s break down each market by price. It will not come as a surprise to see that higher-priced properties take longer to sell, but the differences are quite stark. Bear in mind that some of the sample sizes, especially at higher price points, are quite small.
The advantage does not shift from sellers to buyers until prices reach $1.5 million.
Similar story here: advantage switches to buyers above $1.5 million.
The change over in Beverly starts at $750,000.
Supply is tight at all price points.
Supply becomes freer above $500,000.
Whereas some of the individual towns have small numbers in some price ranges, Essex County overall has larger numbers and therefore the numbers are a more reliable guide to the overall market. These numbers show how the supply increases as do prices, but that current inventory continues to favor sellers up to $1 million.
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