As we wrap up another year, it's essential to take a moment to analyze the shifts and trends in the Haverhill, MA, real estate market. The past year has brought significant changes, reflecting broader national trends while also showcasing the unique dynamics of our local market. Compiled with meticulous care by Nick Nahid, this report delves into the key indicators from 2023 compared to 2022, providing a clear picture of where we stand and where we might be headed.

Inventory Dynamics

The listing inventory at the close of December shows a marked decrease, with available single-family homes dropping from 18 units in 2022 to 12 in 2023, a significant 33.33% reduction. This decline in inventory is a clear indicator of a tightening market, which has implications for both buyers and sellers.

Market Timeframe

Homes are spending more time on the market before being sold, with the average days on market increasing from 61 to 94 days, a 54.10% rise. This longer market duration suggests a shift towards a more balanced market, giving buyers more time to make decisions.

Pricing Trends

One of the most notable changes is in pricing. The average list price saw a substantial increase of 27.63%, climbing from $600,000 in 2022 to $765,783 in 2023. The price per square foot also rose by 24.49%, from $292.16 to $363.71, reflecting a growing premium on space in Haverhill homes.

Absorption Rate and Supply

The absorption rate, which measures the speed at which available homes are sold, increased slightly by 12.50%, indicating a slightly faster-moving market despite the lower inventory. However, the months supply of inventory dipped slightly by 10.53%, suggesting that while homes may be selling marginally faster, the reduced inventory is a significant factor.

Year-to-Date Listing Activity

The total number of new listings taken throughout the year fell by 23.86%, from 415 in 2022 to 316 in 2023, indicating a tighter market with fewer homeowners choosing to sell. This decrease in new listings has contributed to the overall reduction in inventory.

Pending Sales

The number of homes that went pending decreased by 18.28%, from 372 in 2022 to 304 in 2023, paralleling the reduction in new listings and highlighting a decrease in transaction volume.

Price Adjustments

There's a noteworthy decline in the number of listings that underwent price changes, plummeting by 54% from 100 in 2022 to just 46 in 2023. This trend suggests that homes are being priced more accurately from the outset, possibly due to better market data and a more predictable market environment.

Sales Performance

The number of closed sales dropped by 25%, from 376 in 2022 to 282 in 2023, which, when viewed alongside the decrease in inventory and listings, paints a picture of a contracting market. However, the average sale price increased by 4.95% to $551,692, indicating that while fewer homes are being sold, the ones that do are fetching higher prices.

Sale Price vs. List Price

An interesting metric to note is the average sale price as a percentage of the list price, which saw a slight decrease from 104.40% to 103.61%. This slight shift suggests that buyers are gaining a bit more negotiation power, or sellers are adjusting expectations closer to market realities.

Distressed Properties

The report also highlights a decrease in distressed sales, with short sales dropping to zero in 2023 from one in 2022, and lender-owned sales decreasing from three to one. This reduction is a positive sign of market health and stability.

Final Thoughts

The Haverhill, MA, real estate market in 2023 has shown resilience amidst changes, with price increases reflecting strong value retention despite reduced inventory and sales volume. For prospective buyers, the market demands swift action given the premium on available homes. Sellers, on the other hand, can expect their properties to fetch competitive prices but may need to exercise patience as homes take longer to sell.

As we move into 2024, the key will be to watch how these trends evolve, especially in terms of inventory levels and pricing dynamics. Whether you're looking to buy, sell, or simply keep a finger on the pulse of Haverhill's real estate scene, staying informed will be crucial in navigating the market effectively.

Data and insights provided in this report are based on information gathered from various sources, including seller and public records. The accuracy of this data is deemed reliable but not guaranteed and reflects market conditions as of December 31, 2023.