Housing Market in Salem Continues to Boom
Posted By: Boston City Properties
Even before the COVID-19 pandemic struck, the housing market in Salem, MA, had been on an upward trajectory. Home values have been steadily increasing for some time, and inventory levels have remained relatively low. This lack of supply has prompted prices to increase even more, creating the perfect storm for a seller’s market. If you want to buy a home in this North Shore community, you’re going to face lots of competition. Boston City Properties can help you identify the perfect home in Salem with access to our massive online database of searching MA real estate listings and many other helpful resources and services.
Median Home Prices Skyrocket
Over the last 10 years or so, median home prices in Salem have increased by more than 30%. Over the last five years alone, prices have increased by 21%. As of May 2020, the median price for a home in Salem stood at $415,000, and that value continued rising into 2021. Inventory levels are exceptionally low, and this is driving up prices even faster. In many cases, homes for sale in Salem receive multiple offers, and bidding wars have become par for the course.
New Home Construction to Soar
A lack of affordable housing has been an emerging crisis in Salem and across the state for many years. A lot of new construction has been happening across Essex County, but much of it consists of luxury homes with sky-high list prices. The mayor has put new programs into place to encourage more affordable housing across the city, and new construction activity should help. Since 2000, the city added an average of 61 new units per year. To keep up with surging demand, it needs to add around 136 new units per year through 2030.
Demand for More Space and Suburban Living
In the wake of the coronavirus pandemic, home buyers’ attitudes have shifted. Before, homes in walkable, urban areas were most in demand. Since the pandemic struck, people want more space – and this is prompting many to consider more suburban locales like Salem. With its charming downtown area and wide array of amenities and services, the city offers a compelling mix of urban-suburban living that is especially desirable in a post-COVID world. New homes in new subdivisions are larger than ever, giving families more space – and many of these homes have nice, big yards, too.
Zoning Changes May Offer Relief
There seems to be no end in sight for the housing boom in Salem. Until availability opens up more, prices are probably going to keep rising. However, the mayor and the city have been working to alleviate some of the problem. Zoning changes could open up new parcels for residential development, leading to another construction boom in the city. Salem may soon allow property owners to rent out accessory dwelling units, often known as in-law apartments, to people other than relatives, which could also present new opportunities for savvy real estate investors.
Find Salem Homes for Sale with Boston City Properties
For now, buying a home in Salem, Massachusetts, is going to be an uphill battle. Bidding wars are par for the course across the region, and home values continue climbing steadily. In the midst of this real estate boom, finding the right home in Salem can be difficult. Connect with Boston City Properties to find what you need more easily. You can search our listings right away to check current availability for what you need. Later, contact us for a referral to a Salem real estate agent or broker who can assist you further. For more information, contact us today.