Salem Housing Market 2014 Review

Here are the highlights for the Salem market for 2014. Note the difference between the SFH and condo markets when compared with the prior peak.

Single Family Homes (SFH)
– the median SFH price increased  7% to $346,750, less than 1% below the  2005 peak of $349,000.
sales dropped  7% to 210, still the 3rd highest year this century
– the ASR* fell sharply from 92.5% to 82.9%, an indication of rising prices

Condos
– the median condo price also increased 7% to $247,000, but is still more than  11% below the peak of $279,000 in 2005
sales were down slightly and are still well below the levels seen in the 2003-06 period
– the ASR* fell from 92.3% to 86.2%, an indication of rising prices

Tax rate
– the FY2015 tax rate is $16.41, a  decrease from $16.73 in FY2014, but the average tax bill will increase nearly 5% or by $227 for SFHs.

I will publish a fuller market report in the near future.

* The ASR is the Assessed Value (AV) divided by the Sales Price (SP).If the ASR is below 100%  it means that properties are selling for more than their AV. Conversely, properties selling below their AV will have an ASR above 100%.
– As we all hope our properties are worth more than the AV we look for an ASR below 100% as a positive sign. In a period of rising prices the ASR is likely to be falling. So what we, as homeowners, want is an ASR below 100% and falling
– Remember that AVs are a lagging indicator: the tax bills just announced for FY2015 are based on actual sales in 2013. Thus the 2014 sales data, reported in this review, will be the basis for FY2016 assessments. And remember, also, that falling tax rates rarely translate into falling tax bills!
– I will be publishing a report in the near future on the average tax bill per city and town in Essex County to go with my recent Essex County 2015 property tax rates report.

If you – or somebody you know – are considering buying or selling a home, or have questions about the market and/or current home prices, feel free to contact me on 617.834.8205 or Andrew.Oliver@SothebysRealty.com.
Andrew Oliver is a Realtor with Harborside Sotheby’s International Realty

Sotheby’s International Realty® is a registered trademark licensed to Sotheby’s International Realty Affiliates LLC. Each Office Is Independently Owned and Operated

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