Peabody, MA Real Estate Market Report 2023

Peabody, Massachusetts, is a prime New England real estate destination, attracting a multitude of affluent homeowners. Nestled conveniently between the bustling city of Boston and the serene Cape Cod, Peabody homes offer residents an array of year-round activities, making it a top choice for families looking to set down roots.

The Peabody real estate market is both intricate and rich, showcasing properties that promise both beauty and value. But it's not just the stunning architecture and breathtaking landscapes that draw buyers in. The town's heartwarming community spirit makes it a hotspot for those seeking a vibrant neighborhood feel. Whether you're buying or selling a home in Peabody, you'll be embraced by a community that values neighborly connections and premium housing opportunities.

For those keen on understanding the Peabody housing market dynamics, our expert real estate team has crafted a detailed analysis. This report covers essential market statistics, in-depth sales trends, property valuations, and a future market outlook. Our aim? To empower potential homeowners with the insights needed to make informed real estate decisions in Peabody.

Peabody is currently experiencing a seller's market. Home prices and demand are often higher in a seller's market than in a neutral or buyer's market. However, this indicates that the supply of houses for sale in Peabody is not meeting buyer demands. Homeowners can expect top dollar for their homes if they choose to sell in the current market. They will have plenty of options and should expect to see offers within days of listing the property.

 

For interested homebuyers, interest rates will be higher, and competition will be fierce. The more competitive the market is, the more likely they will need to make an offer above the asking price or provide other concessions, such as closing costs or rent credits.

 

The town’s market has favored sellers since 2021. As a result, home prices rose as demand increased while supply decreased. In 2022, the trend continues with more homes available than buyers interested in purchasing them. As such, we can expect that this trend will continue into 2023 as well.

The median list and sold prices for homes and condos in Peabody have drastically increased over the past year. The median list price for single-family homes is $642,000 and $449,000 for condos, roughly $75,000 more than the 2021 listed prices. The median sold price is $575,000, up 6.5% from last year. While condos have significantly increased, the most notable hikes involve one-bedroom family homes and properties with five or more bedrooms.

 

The increase in home prices will have a major effect on buyers, who will likely have to pay more for their dream home than anticipated. Sellers should expect an uptick in their property values due to increased demand from buyers across Massachusetts who want a piece of what Peabody offers.

 

In 2023, we expect to see a continuation of this trend as homeowners continue to move into Peabody and other surrounding towns due to its central location within Massachusetts. The city's proximity to Boston also gives it access to world-class schools and institutions for higher education, as well as cultural activities like museums and theaters that are often difficult to find outside of major cities like Boston or New York City.

The sale-to-list ratio in Peabody is 1:1, meaning homes are selling for more than the asking price. In fact, in September 2022, 54% of homes were sold over the listed price. Though buyers may face higher-than-expected price tags, the good news is that Peabody's market is so hot right now that prospective buyers will likely still find a suitable home s even if they have to pay a little extra.

 

Sellers can rest assured knowing there will be plenty of buyers interested in purchasing their property. This means they will not have to worry about lowering the listed price or having the property sit on the market for months. The best way to ensure the home sells quickly is by keeping it in good condition and maintaining current curb appeal. As long as plenty of people are still looking for high-quality homes at reasonable prices, this trend should continue well into 2023.

Peabody’s median days to close is 50 days, two days short of the September 2021 median. Within the last month, 80% of homes were sold in under 30 days. Due to high demand and competition, properties are being snatched up quickly. This directly affects buyers who want to get into Peabody before prices rise and inventory decreases further. It also affects sellers because they have less time to find a buyer when their home is listed for sale. These trends will continue into 2023 as the market continues to be hot on both ends of the spectrum. Buyers have little patience, and sellers are taking advantage of this by asking more than they would have under different market pressures.

As of October 2022, there are six condos and 20 single-family homes for sale in Peabody, MA, a slight increase month over month. The majority of the inventory features properties that include three to four bedrooms. This data reflects an increase in the number of homes available on the market, which could also indicate an increase in demand. However, the current market is still very seller-driven because of low inventory levels, but local experts predict this will change in 2023 as more new developments are built. The increase in inventory levels over the next few years will likely spur sales activity where buyers can choose between more options at lower prices.

Massachusetts’ interest rates sit slightly below the national benchmark at 7.00% for a 30-year fixed loan and 6.16% for a 15-year fixed rate. However, the Federal Reserve is expected to increase the average mortgage interest rates as the fight against inflation continues. While it is still possible that rates could rise even more later this year due to inflationary pressures, it appears that this increase will not be dramatic enough to derail the current housing market recovery or significantly impact home prices in Peabody.

The housing market in Peabody is thriving. The average home price in Peabody has increased 117% since 2000, and the region is experiencing a boom in new construction. This makes for an exciting time for buyers and sellers alike, but it also means many opportunities for investors looking to capitalize on a hot market.

 

The neighborhoods with the highest appreciation rates over the past two decades include South Peabody, Peabody Town Center, West Peabody, and Proctor South. These neighborhoods are comprised of newer homes built in the last 20 years. They're also close to the city center and have easy access to major highways.

 

When it comes to luxury homes for sale in Peabody, MA, Louise Touchette is the name to know. She has helped countless clients find their dream homes and knows precisely what it takes to make your closing day go smoothly, including Lynnfield homes for sale. Louise is also well-versed in the Lynnfield neighborhood, offering insider knowledge that goes beyond typical listings. If you are ready to work with one of the top real estate agents in Peabody, MA, and want to uncover the secrets no real estate broker will tell you, contact Louise today! 

_{*Header photo courtesy of Louise Touchette}