ITEM GRAPHIC
This graphic shows the increase in North Shore condominium sales from 2015-2016.
By THOMAS GRILLO
LYNN — Condominium sales in the city made the biggest splash on the North Shore last year as buyers sought alternatives to higher prices closer to Boston.
The number of condos sold in 2016 soared by a whopping 48 percent in Lynn to 225 units, up from 152 in 2015, according to The Warren Group, the Boston-based real estate tracking firm.
Perhaps the most attractive thing about Lynn condos was the low cost, say agents. The median price of a condo last year was $180,000, up less than 1 percent from $178,500 in 2015.
In contrast, buyers faced sticker shock in competing cities that are out of reach for many potential buyers. In Chelsea, the median was $317,000, East Boston reached $416,000, Somerville was $580,000 and South Boston topped out at $631,000.
“Buyers are choosing Lynn because it’s more affordable,” said Michael Connor, owner-manager at Connor Real Estate in Lynn. “There’s great value for your money here compared to other cities.”
Colleen Toner, broker-owner of Toner Real Estate in Lynn, said the soaring cost of apartments in Lynn is driving condo sales. A tenant paying $1,500 in rent would pay less than $1,200 per month for a $200,000 condo with 5 percent down.
The other factor that drove sales last year was low interest rates, Toner said.
The average mortgage interest rate in 2016 was 3.65 percent. That’s down from 4.17 percent in 2014, according to Freddie Mac, the federal agency that provides mortgage capital to lenders.
Revere was the only other North Shore city to demonstrate a strong sales condo market as 204 units sold last year compared to 156 in 2015, a 31 percent hike. While sales increased, median prices fell by 4.4 percent to $267,200 last year, down from $279,500 in 2015.
Four communities, including Peabody, Swampscott, Lynnfield and Marblehead, saw sales fall but prices rise.
In Peabody, 154 units sold in 2016, down more than 9 percent from 2015 levels when sales reached 170. But the median price rose to $267,750 last year, up from $254,500 in 2015, a 5.2 percent hike.
Sales of condos in Swampscott slipped to 62 last year from 69 in 2015, a 10 percent drop, as median prices increased by 4 percent to $255,000 last year, up from $244,900 in 2015.
Lynnfield condo sales fell by 30 percent with 14 units sold last year, down from 20 in 2015. But the median price increased by 60 percent to $709,900, up from $440,000 in 2015.
In Marblehead, 52 condos sold last year, down from 57 in 2015, a nearly 9 percent dip while median prices rose to $350,750, a 14 percent increase over the 2015 level of $307,500.
Sales were flat in Nahant, which has a small condo market. Just six units sold last year, the same as in 2015. But median prices showed the biggest increase on the North Shore and reached $370,000 last year, up from $209,300, a 77 percent jump.
Only Saugus experienced fewer sales and a drop in the median price. A total of 54 condos sold last year, down from 56 in 2015 while the median fell to $286,000 last year from $323,750 in 2015, a nearly 12 percent dip.
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Thomas Grillo can be reached at [email protected].