The median price of a single-family home in Salem, Massachusetts increased 6.7 percent in December compared to December 2015 and increased 5.5 percent in 2016 compared to 2015, according to data collected by the Massachusetts Association of Realtors.
The median home price in December 2016 was $349,500 compared to $327,500 in December 2015. For the entire year, the median home price was $364,000 compared to $345,000 in 2015. In December 2016 homebuyers paid on average 94.6 percent of the original list price compared to 92.3 percent of the original list price in December 2015. During all of 2016, homebuyers paid on average 98.5 percent of the original list price compared to 96.2 percent in 2015.
Tight real estate inventory is one reason why homebuyers paid close to list price. The number of single-family homes available in December plunged 60 percent to only 14 houses on the market compared to 35 in December 2015. The months supply of inventory for both condos and single-family houses was less than one month in December. About six months of inventory is considered a balanced market between homebuyers and home sellers.
December home sales were the same as December 2015. Both Decembers had 26 houses sold. The number of new single-family listings available in December increased 44.4 percent to 13 compared to nine new listings in December 2015. Sales did increase 5.4 percent for the full year to 295 compared to 280 homes sold in 2015.
Salem condominium sales also were strong, increasing 20.8 percent in December from 24 to 29 units sold in December 2015. Condominium inventory declined 64.3 percent to 25 from 70 units available in December 2015. New condo listings decreased from 16 to 22 in December compared to the previous December.
The median condo price increased 5 percent in 2016 to $275,500 from $261,500 during the same twelve-month period in 2015. In December, the median condo price decreased 1.5 percent to $275,500. On average homebuyers paid 97.3 percent of the original list price in December. Homebuyers paid 92.3 percent of the original list price in December 2015. Homebuyers paid on average 97.9 percent of the original list price in 2016 compared to 96.6 percent in 2015.