Salem Mid-Year Review: Condo Market sizzling
Condo sales have sizzled this year, up 45% in the first half from a year ago, and up 60% over the average for the first half for the last 5 years. Current inventory represents less than 2 months of supply based on sales in the second quarter, and is about equal to the number sold in the month of June alone.
Median prices* have not – at least as yet – responded to this imbalance between supply and demand, with a modest increase of just under 4% in the first half to $280,000, a new record for the first half (the highest annual median price is$279,000 in 2005, so there is a good chance that 2016 will set a new record high.)
Sales of Single Family Homes (SFH) also jumped sharply, up 30% from a year ago, and almost matched the prior high. The median price of a SFH increased 6.5% to a new record of $380,000 (the highest annual median price is $349,450 in 2015, so it looks certain that 2016 will see that record well beaten.)
The following chart and table show the median price for the last 5 years, followed by a more detailed break down by quarter.
Condo Sales by price
Sales under $250,000 dropped from 41% to 32% of the total, while those in the $250-299k range increased sharply from 19% to 32%, supporting the evidence that prices are increasing.
Single Family Homes (SFH)
Here is the chart of half-yearly median prices for the last 5 years, followed by a table showing quarterly numbers. The median price set a record in the first half and is on track for a new record annual high.
While the number of SFHs for sale is up a little from a year ago (but still very low in absolute terms), there has been a sharp drop in the number of condos for sale.
Low inventory + low mortgage rates + buyers looking = higher prices.
*In all my reports and analyses, median price calculations exclude distressed sales – foreclosures and short sales, which typically occur at a significant discount to the normal market.. When I report on “sales” I refer to all sales, including distressed ones.
If you are considering selling your home please contact me on 617.834.8205 or Andrew.Oliver@SothebysRealty.com for a free market analysis and explanation of the outstanding marketing program I offer.
If you are looking to buy, I will contact you immediately when a house that meets your needs is available. In this market you need to have somebody looking after your interests.
Andrew Oliver is a Realtor with Harborside Sotheby’s International Realty. Each Office Is Independently Owned and Operated