Real Estate Trends – Salem, New Hampshire #2

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 changed has and then evaluate what those observations might mean for that market moving forward.

Today we are once again highlighting the market in Salem, NH in Rockingham County

 Salem NH Town Seal - Salem New Hampshire Real Estate

We took a look at the Salem, NH market back last June where we saw a fair decline in the market.

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

The Salem, NH market has fallen off somewhat since last year.   The average prices were down significantly and the median prices were down as well.  The days on market were down a little, and the initial numbers might be a bit understated.  Inventory was up a little with 14 sales in February of 2015 and 16 in February 2016. 

Average Listing Prices:

We will first start off by looking at the average listing price.  In Salem, NH the average listing price in February 2015 was $311,686.  This was down to $255,181 in February 2016.  This gives a very big decrease of 18.13% year over year. 

Looking at the median prices we see that it was much lower in 2015 and slightly higher in 2016.  For February of 2015 the median listing price for Salem, MA was $269,950 and in February 2016 it was $259,950 which now gives a small decrease of 3.70%. 

Average Sale Prices:

The next thing we will be looking at is the average sale prices.  The average sale price for in Salem, NH in February of 2015 was $308,893 and in February 2016 that was down to $248,131.  That gives a bit higher decrease of 19.67% compared to the average list price. 

We see the same pattern that we did with the listing prices for the median sale prices.  For February of 2015 the median sales price for Burlington, MA was $269,750 and in February 2016 it was $253,000 giving another smaller decrease of 6.21%. 

Prices are down at least some in Salem, NH.  The averages make it look like things are really tanking but the medians show a much more modest decline.  This is a classic example of why medians are generally preferred for this type of analysis.  In this case 2015 had one sale that was a much, much higher than any other in either year and also had the 2nd highest sale, which was also quite a bit higher than all the other ones too.  So using the medians minimizes the influence they have in skewing the numbers unreasonably high.  So while it is worth noting that the high end of the market went away this year overall the medians give a much more accurate picture.  Given these facts the median sale price decline of a little over 6% is probably where the market lies rather than the close to 20% drops seen with the averages.

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 Salem, NH the average days on market in February of 2015 were 87.93 and the average days on market for February 2016 were 79.19 for a fairly small 9.93% decrease. 

However, as we have seen many times before in our previous posts for AbingtonBedfordSeekonk, BelmontTopsfieldCanton, Dracut (Condos)HamiltonWakefield, Amesbury (Condos), Dracut #2, Taunton, Reading, Stoughton, Wrentham, Stoneham, Dedham, Nashua, NH, Tewksbury, Brockton (Multifamily), Lowell (Multifamily), Acton, Foxboro, Pembroke, Chelmsford, BeverlyFramingham (Condos), Plymouth County (Condos), Marlborough, Billerica, Waltham, Dracut (Condos) #2, Derry, NH, Framingham, Burlington, Duxbury, Acton #2 , Taunton (Condos), Tyngsborough, Milton, Salem, NH, Boston’s Hyde Park, Boston’s West Roxbury , Somerville, Canton #3, Pelham, NH, Westford, Plymouth (Condos), Boston’s Jamaica Plain , Halifax,Braintree (Condos), Newton (Multifamily), Plainville ,Boxford, Wayland , West Bridgewater, East Bridgewater, Marlborough (Condos), Natick (Condos), Gloucester, (Condos), Melrose (Condos),Norton (Condos), Newburyport, Atkinson, NH, Fairhaven, Lexington, Arlington (Condos), Salisbury, Weston, Groton, Wellesley, Littleton, Lowell (Condos) #2, East Boston (Condos), Dedham #3, Hanover, Canton (Condos), Belmont #2, Seabrook, NH, Hingham (Condos), Lakeville, Raynham, Holliston, Londonderry, NH, Georgetown, South Boston (Condos), Needham #2, Arlington #2, Foxboro #2, Boston’s Roslindale (Condos) and Burlington #2 outliers in the data can really skew these numbers.  This again is the case for Salem, NH in February.  In this instance there was a very high days on market place in 2016.

In 2016 there was a property with 703 days on market; this was more than the other 15 properties combined and almost 55.5% of the total days on market for all 16 Properties.  When removed the new calculation for the remaining 15 properties gives an average days on market of 37.60. 

Using the adjusted numbers we now get a much higher decrease of 57.24%.  This does not change the general conclusion of the days on market were down, however instead of the initial thought that they were only down a small bit we now see they look to be down a very significant amount. 

Salem, New Hampshire Summary:

The Salem, New Hampshire real estate market is down some since last year.  The average prices were down a lot with the median prices were down as well, but much less.  The days on market were down significantly, which was a little surprising with the prices drops.  This also can be an argument that it is not down much if at all.  We would disagree with this conclusion but such a large drop in the days on market does lessen the impact of the lower prices in a meaningful way. 

In summary if you are looking to sell a house in Salem, NH now you should expect to get at least a little bit less for it than you would have gotten last year.  However, you can also expect it to take much less time to sell compared to last year as well. 

 

Do you need to sell your Salem, New Hampshire house 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: Salem NH Town Seal via Wikipedia)

 

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