Million dollar homes in Massachusetts

A Million Dollars still conjures up an image of luxury, and I suspect many of us are attracted to headlines which include the magic number. This article will look at Million Dollar homes for the counties of Massachusetts, with a breakdown by town for Essex County.

Note that all numbers are from the MLS, which does not include Nantucket or Martha’s Vineyard, and may exclude some sales in other parts of the State which have their own reporting system. With that caveat, let’s get started.

First, sales for the Last 12 Months (LTM).
Here’s a pie chart:

Source: MLS, Oliver Reports

Source: MLS, Oliver Reports


and here are the numbers:

Source: MLS, Oliver Reports

Source: MLS, Oliver Reports

The good news is that, despite the concern about the lack of sales at the higher end, there were nearly 2,000 sales of Million Dollar Plus (MDP) homes in MA in the last year. Note, however, that 73% of these took place in Middlesex (Belmont, Cambridge, Concord, Lexington, Newton, Wayland, Weston, Winchester) and Norfolk (Brookline, Cohasset, Needham, Wellesley). Suffolk (Boston) has fewer than one might expect because the main market is condos, of which 500 sold at MDP.

Now let’s look at Essex County. First, the pie chart:

Source: MLS, Oliver Reports

Source: MLS, Oliver Reports

And then the numbers:

Source: MLS, Oliver Reports

Source: MLS, Oliver Reports

One surprise, at least to me, is the low number of sales in Manchester.

Next we’ll look at the number of houses currently for sale for $1 million or more. We’ll start again with the State by County:

Source: MLS, Oliver Reports

Source: MLS, Oliver Reports

and the numbers:

Source: MLS, Oliver Reports

Source: MLS, Oliver Reports

This lets us calculate the current supply, bearing in mind that a market with 6 months of supply is generally considered to be in equilibrium between buyers and sellers:

Source: MLS, Oliver Reports

Source: MLS, Oliver Reports

No real surprises here: the higher the price, the longer to takes to sell.

Now Essex County for sale:

Sources: MLS, Oliver Reports

Sources: MLS, Oliver Reports

and the numbers:

Source: MLS, Oliver Reports

Source: MLS, Oliver Reports

and the supply:

Source: MLS, Oliver Reports

Source: MLS, Oliver Reports

Thus we can see that the supply in Essex County is roughly double that for the State generally.

And finally, pending home sales: where there is an accepted offer but the sale has not yet closed:

First, by County:

Source: MLS, Oliver Reports

Source: MLS, Oliver Reports

and the numbers:

Source: MLS, Oliver Reports

Source: MLS, Oliver Reports

and for Essex County, by town:

Source: MLS, Oliver Reports

Source: MLS, Oliver Reports

and the numbers:

Source: MLS, Oliver Reports

Source: MLS, Oliver Reports

These numbers again show that sales at the higher end are taking place, especially in Middlesex and Norfolk Counties. Here in Essex County, sales are slower. Two possible reasons are the large supply, and the general observation that buying at the top end starts in Boston, moves to the immediate suburbs, and then after that ripples further out. If the latter opinion is right, then 2014 may be a better year for higher end sales in Essex County.

 

 

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