Marblehead properties are selling at nearly unprecedented high prices.
In an article in the Sept. 11 edition of Banker & Tradesman newspaper, Marblehead was ranked as the fourth “hottest” town in Massachusetts as it pertains to selling-price increases. According to the article, the town has made 87 individual sales so far this year. The median sales price is $950,000, with the most important statistic being the year-over-year median sales price at a 17.28% increase compared to 2022.
In contrast, the year-over-year increase statewide was only 4.27% over the last year. Some of Marblehead’s most well-known and longest-tenured realtors lent their thoughts on why this is the case, as well as what it means for their business operations.
Jean Carlson has more than 25 years of local real estate experience. She, along with multiple family members, works for Sotheby’s International Realty. She explained why she believes the value of properties in town have seen an increase.
“You get multiple offers over the asking prices because there’s such a demand,” Carlson said. “We’re also getting a lot of out-of-town buyers which is unusual for Marblehead … People want to get out of the city and into the suburbs more.”
Carlson added that lifestyle changes brought on by the COVID-19 pandemic, such as working remotely, have given people the ability to relocate from places like Boston to Marblehead and other suburban municipalities.
Town Moderator Jack Attridge is also vice president of William Raveis Real Estate. He asserted that properties are being sold at high rates due to the high demand and low supply.
“I’ve heard reports that sales in August in the greater Boston area were as low as they’ve been since 2010,” he said. “The difference is that in 2010 we didn’t have any buyers but we had a lot of supply. In 2023, we have a lot of buyers and no supply.”
“I was in a competitive-offer situation this past week on a new listing,” he continued. “The offer that I presented was 31% over the asking price, but my buyers didn’t get it.”
He suggested that the low inventory is most likely due to low interest rates and mortgages.
“A lot of people are saying, ‘Why would I leave my 2.5% mortgage?’” Attridge said.
Kelly Duggan, founder of Kelly Duggan Real Estate LLC, provided a statistic that further adds to the premise that the demand for housing in Marblehead is currently very high.
“Marblehead is a hot market,” she said “On average for 2023 YTD a house will last 35 days on the market. The volume of sales in Marblehead from Jan. 1, 2023, to Sept. 19, 2023, according to Multiple Listing Service, using double count method, totals: $283,414,860.00.”
While supply is currently low and demand is high, Carlson insisted things are always bound to change in the real estate business.
“Real estate is cyclical,” she said. “Anybody that is in the real estate business knows that it goes up and down and you just have to be steady and go with it.”