The slowing real estate market arrived in Salem, Massachusetts, in November, with single-family and condominium sales plummeting and year-over-year prices dipping for the first time in 2022, according to data compiled by the Massachusetts Association of Realtors.
Single-family home sales plunged 25 percent in November to 12 from 16 in November 2021. Through November, homebuyers bought 192 houses, up 9 percent compared to the same timeframe last year.
Statewide, single-family sales fell by 30 percent in November and 14 percent through November.
The median house price declined nearly 5 percent in November to $576,000 from $604,900 year over year; however, through the first 11 months of 2022, Salem single-family prices were up about 8 percent to $613,500. In November 2017, the median price of a single-family home in Salem was $402,500.
Across Massachusetts, single-family home prices rose 5 percent in November and 8 percent through November.
Condominium sales dropped 70 percent in November to 21 from 69 units closed in November 2021. From January through November, condo sales fell about 16 percent to 316 from 374 during the first 11 months of 2021.
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Condominium sales across Massachusetts fell 31 percent in November compared to November 2021. Through November, homebuyers purchased 19,258 units, a 19 percent drop from the 23,655 sold during the same 11 months last year.
The median condo price slipped 2 percent in November to $475,000 from $485,000 in November 2021. Through November, condo prices are up 4 percent. Five years ago, in November 2017, the median condo price was $299,000.
In Massachusetts, the median condo price rose 5 percent in November and 7 percent through November.
Competition for homes in Salem has cooled. In November, Salem homebuyers paid, on average, 101 percent of the original list price for single-family homes compared to 105 percent in November 2021. For condominiums, homebuyers paid 101 percent in November 2021 and 99 percent of the original list price this past November.
Inventory remains tight in Witch City, contributing to the slowdown in real estate sales. While single-family stock climbed by four houses in November to 21 compared to 17 houses in November 2021, there were only about five weeks of supply. There was less than one month of inventory for condos at the end of November.
The inventory situation is likely to stay the same for a while. New single-family listings declined 14 percent, and new condominium listings dropped 35 percent in November.