Salem, Massachusetts real estate sales and median prices have increased during the first seven months of 2016, with condominium sales leading the way, according to data compiled by the Massachusetts Association of Realtors.
Condos sales increased 23.1 percent through July to 245 units sold compared to 199 condo sales during the same seven-month period last year; however, sales in July declined 35.2 percent to 35 units sold from 54 sales the previous July. Pending sales – condominiums under agreement that have yet to close – were flat in July, decreasing by just one to 41.
The slowdown in July condo sales can be attributed to tightening inventory and a decline in new listings. The number of condominiums on the market declined 48.6 percent in July to 57 units compared to 111 units for sale in July 2015. The months supply of inventory declined 61 percent to just 1.6 months of supply. About six months supply of inventory is considered a balanced market between buyers and sellers. It doesn't appear the inventory situation will improve for buyers in the short term. New condo listings declined 36.2 percent to 37 from 58 new listings in July 2015.
The median condo price increased 3 percent to $278,000 through July compared to $270,000 during the same time frame last year. The median price in July declined 3.4 percent to $275,000. Homebuyers paid on average 99.6 percent of the original list price in July and 97.5 percent of the original list price through July.
Single-family home sales in Salem increased 21.6 percent through July to 135 houses sold. Home sales declined by three to 20 in July. Pending sales were flat, with 23 sales pending in both July 2016 and July 2015.
The median price of a single-family home increased 7.2 percent through July to $370,000 compared to $345,000 during the January-through-July period in 2015. The median price increased 13.3 percent in July to $374,000. Homebuyers paid on average 99.1 percent of the original list price in July and 97.6 percent of the original list price through July.
Single-family inventory also was tight in July, with the number of homes on the market declining from 51 in July 2015 to 43 this past July. The months supply of inventory decreased to 2.1 months. New listings slightly increased from 30 in July 2015 to 34 in July 2016.