Real Estate Trends – Marblehead, Massachusetts

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 highlighting the market in Marblehead, MA in Essex County

 Illuminated Marblehead Harbor - Marblehead Massachusetts Real Estate

Market Trends in Marblehead, MA – October 2014 and 2015:

The Marblehead, MA market has fallen off a bit since last year.   The average prices were both down a huge amount.  While not as dramatic the median prices were down as well.  The days on market are down by a tremendous amount.  Inventory was pretty stable with 17 sales in October of 2014 and going up slightly to 19 in October 2015. 

Average Listing Prices:

To start off first we are going to look at the average listing price.  For Marblehead, MA the average listing price in October 2014 was $1,179,735.  This plummeted down to $679,826 in October 2015.  This gives a humongous decrease of 42.37% year over year. 

With that kind of ridiculously big drop we would always want to see how the median prices compare.  Looking at the median prices we see that it was a lot lower than the average in both years but especially in 2014.  For October of 2014 the median listing price for Marblehead, MA was $599,900 and in October 2015 it was $539,000 which now gives a still substantial but much smaller decrease of 10.15%.

Average Sale Prices:

Next up we will be looking at is the average sale prices.  The average sale price for Marblehead, MA in October of 2014 was $1,110,059 and in October 2015 that was down to $629,145.  That gives another fairly ridiculous 43.32% decrease. 

We see the same pattern with the median sale prices as we did for the listing prices for both years.  For October of 2014 the median sales price for Marblehead, MA was $565,000 and in October 2015 it was $516,750 giving another significant but much smaller decrease of 8.54%.

Prices are definitely down in Marblehead, MA this month.  We have to discount the changes in the average prices significantly as several multimillion dollar sales in 2014 really skewed those numbers high.   However I would not totally dismiss those numbers as there were multiple million dollar sales both years just several more and at higher prices in 2014 so this does seem to indicate that the high end of the market has softened, which is an interesting point itself.  In general though this is why medians are usually favored in these types of analyses so we will put much more weight on those.  Therefore we would conclude that prices are down more like 8-10% for Marblehead, MA as indicated by the medians.  It could be argued that it might be more based on the observations about the top end of the market, however it is still much closer to 10% then it would be to the greater than 40% drops seen with the average prices.

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 Marblehead, MA the average days on market in October of 2014 were 274.47 and the average days on market for October 2015 were 106.95 for a very large 61.03% decrease. 

If you have read some of our past reports you have seen that it is not uncommon for us to point out there is a place with a very high days on market that is skewing the rest of the data and we will eliminate that and use an adjusted number to get a better feel for what is really happening.  In this case for 2014 there are two places that had numbers around 900(!) days on market.  However since there were two of them it is not obvious that they are outliers to eliminate both.  I would suspect that a rigorous statistical evaluation might in fact eliminate both but we do not do that for these reports and only eliminate the “no brainer” ones.  All that being said even taking those 2 points out the days on market in 2014 would still be high and despite the large decrease the days on market in 2015 are still very high and not anything a seller would want to see.

Marblehead, Mass Summary:

The Marblehead, Massachusetts real estate market is down a bit since last year.  The average prices were down a ridiculous amount and median prices were both down a good amount as well.  The days on market were down quite a lot though, but are still very high. 

In summary if you are looking to sell a property in Marblehead, MA now you should expect to get a good amount less for it than you would have gotten last year.  You should also expect it to take a lot less time to sell compared to last year, though it will still probably take a very long time. 

 

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

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(Image credit: Marblehead Harbor Illumination via boston.com)