Welcome to the charming North Boston suburb of Peabody. This community is a popular place for both young professionals and retirees to reside. Peabody’s citizens are drawn to the central location, only 30 minutes north of Boston, with easy access to New Hampshire and the Atlantic shore. They also love the friendly suburban atmosphere, the many ways the community engages with and supports its residents, and the rich history.
For guidance and an overview of the Peabody real estate market and what the city has to offer, reach out to Evelyn Rockas, award-winning local agent.
What’s happening in the Peabody real estate market?
To understand where Peabody, MA, real estate is headed, we must first consider where it has been. Because 2020 and 2021 were such unprecedented years both for the US as a nation and for the real estate industry, it is misleading to judge the health of the whole on a comparison of this year with those anomalies.
According to the latest data from the Massachusetts Association of Realtors, within Essex County, the median sales price currently stands at $593,750 as of January 2023, which is a 3.3% rise from January 2022. Compare that with the 30% rise in prices seen from January 2020 to 2021, and you can see that the market has slowed.
In addition, closed sales are down by 37.7% from a year ago, and the supply of inventory has risen slightly by 16.7%. Properties also spend longer on the market, currently sitting at 39 days compared to 29 days the year prior.
While it’s true that the market has shown signs of slowing down and readjusting over the course of 2022, it’s important to remember that the real estate landscape is recovering from a frenzied seller’s market. Thanks to the pandemic, we saw record-breaking highs and buyer competition. Truly, our understanding of the market, and our response to it, must be based upon long-range data, not simply what we have observed since the pandemic turned our world upside down. Taking a longer look at the data, if we go back to 2019, we can see that homes are now selling much faster. As of December 2019, homes in the county took an average of 60 days before selling. In addition, the median sales price has risen dramatically since then.
With that in mind, you can rest easier knowing that the Peabody, MA, real estate market is stable in comparison with pre-pandemic values. Homes are still in great demand, which is good news if you’re in the market for selling.
What other factors are impacting real estate?
Interest rates have steadily climbed throughout 2022, thanks to efforts by the Fed to mitigate rising inflation. Interest rate increases have a tremendous effect on both buyers’ ability to purchase homes and potential sellers’ willingness to relocate, particularly if their current residence is paid in full or if purchasing a new home will require a high-interest mortgage. These combined factors result in fewer houses on the market and fewer people looking to purchase homes. This has helped to halt the buying frenzy, as well as curb those incredibly inflated prices.
Will we ever get relief?
Yes, most assuredly, interest rates and inflation cannot climb forever. However, most analysts predict that more interest rate hikes are in store in the immediate future, and they are likely to continue incrementally until inflation is comfortably subdued. The most optimistic tell us what we want to hear: interest rates have peaked and are on the decline. When inflation turns downward, interest rates will begin to return to more buyer-friendly levels as well.
The real estate market is moving into balance. Prices have reached a level that sellers and buyers can both live with. People continue to seek the quality of life and community that Peabody offers, as well as its accessibility to the city.
How can I make the best of the current market?
If you need to buy a home in 2023, your first counsel must be your financial advisor. Let them talk with you through the impact of high interest rates on your monthly payments and guide you through any adjustments that need to be made to your overall budget to accommodate the rate. Also, rest assured that these rates will not stay high forever, as you may have the option to refinance later. Also, buyers in the luxury market are typically less impacted by market shifts than the average home buyer. You may find, as you are seeking your perfect Peabody house for sale, that very little has changed.
If you are a seller, remember that home values are continuing to rise, albeit at a slower pace. Oftentimes in periods of high inflation, buyers are more cautious in their decision-making process, meaning it may take a bit longer to sell your home than you anticipated. Entice buyers to your property by making sure everything is in top condition and that the house is move-in ready. Set your asking price fairly. If a bit more nudging is needed, consider offering to buy down points for their loan rate.
Whether you are buying or selling a home, an experienced, credentialed, and award-winning real estate agent can be your greatest asset in meeting your goals for Peabody real estate. Who better than Evelyn Rockas, lifelong resident of the North Shore and ten-year industry veteran, to work tirelessly on your behalf? One of her priorities is to exceed your expectations and attain client satisfaction. Give her a call today.
Recommended reading: Complete Homebuying Guide for Peabody
Recommended reading: Complete Homebuying Guide for Peabody
