Real Estate Trends – Salem, Massachusetts (Condos)

Introduction:

Welcome back again for our latest real estate market trend report.  For those of you that are here for the first time what we do in these reports is examine the real estate market in a city or town in Massachusetts or New Hampshire to evaluate the current conditions.  We do this by looking at the changes in three key metrics year over year for the municipality to see how the market has changed and then evaluate what those observations might mean for that market moving forward.

Today we are taking a look at the Condo market in Salem, MA in Essex County

 Flag of Salem MA - Salem Massachusetts Real Estate

Market Trends in Salem, MA – February 2015 and 2016:

The Salem, MA condo market has fallen off some since last year.   The average prices were down a lot and the median prices were down some too.  The days on market were also up a bit as well.  Inventory was up a good amount going from 14 sales in February of 2015 up to 22 in February 2016. 

Average Listing Prices:

We will first start off by looking at the average listing price.  For condos in Salem, MA the average listing price in February 2015 was $313,113.  This was down to $254,309 in January 2016.  This gives a very big 18.78% decrease year over year. 

Looking at the median prices we see that it was lower than the average in 2015 but a little higher in 2016.  For February of 2015 the median listing price for Salem, MA condos was $269,450 and in February 2016 it was $257,450 which now gives a much smaller decrease of 4.45%. 

Average Sale Prices:

The next thing we will be looking at is the average sale prices.  The average sale price for a condo in Salem, MA in February of 2015 was $306,657 and in February 2016 that was down to $250,768.  That gives another substantial 18.23% decrease.

We see a fairly similar pattern with the median sale prices as we did for the listing prices.  For February of 2015 the median sales price for Salem, MA condos were $262,250 and in February 2016 it was $257,450 giving a very small decrease of 1.83%. 

The condo market in Salem, MA is a little harder to pin down than most with this month’s data.  The averages would indicate that prices are down substantially while the medians show only a modest decline.  Usually the median sale price is the most favored metric for this kind of analysis and that would say that things were fairly flat with barely any decrease.  However this is a case where I would not want to just ignore the averages since looking at the data you see some other indicators that things are down this year more than the 1-2% the median sale price says.  A few of these things is that the 6 lowest sales were in 2016 and then the 3 highest sales were in 2015 (two of them being quite a bit higher, hence the average being a lot higher).  So in this case the median seems to be a little misleading.  While it might not be realistic to say the market is down close to the 18-19% the averages say, being down less than 2% seems unrealistic too.  The truth is probably in the middle and our best guess would be that things are down probably more in the 8-10% range.

Average Days on Market:

Finally the last metric we look at are the average days on market, which is the measure of how long it takes for a property to sell in the current market.  For condos in Salem, MA the average days on market in February of 2015 were 79.14 and the average days on market for February 2016 were 96.64 for a decent 22.11% increase. 

Salem, Mass Summary:

The Salem, Massachusetts condo real estate market is down since last year.  The average prices were down quite a bit and the median prices were down a small amount as well.  The days on market are also up a fair amount.

In summary if you are looking to sell a condo in Salem, MA now you should expect to get less for it than you would have gotten last year.  You can also expect it to take more time to sell compared to last year as well. 

 

Do you need to sell your Salem, Massachusetts condo fast?  If you would like to sell your home fast and hassle free schedule a consultation with us today.

Please share your questions and comments below.

 

 

 

(Image credit: Flag_of_Salem,_Massachusetts via Wikipedia)

 

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