Peabody's Market Right Now

Peabody sits at the crossroads of Routes 1, 114 and 128/I-95, with a housing mix that includes single-family homes, condominiums and multi-family properties. Here is what the most recent data shows:

• Median sale price: $693,641 in August 2026, up 3.6% from a year earlier (Redfin).
• Pace: 124 homes sold in August, up 5.2%, with a median of 20 days on market (Redfin).
• Competition: 66.2% of homes sold above list price, and the average sale-to-list ratio was 102.5% (Redfin, August 2026).
• Some breathing room: 20.6% of homes had a price drop, and Essex County had 1,238 active listings in September 2026, compared with 991 a year earlier (Realtor.com via FRED).

In plain terms, well-priced Peabody homes still move quickly, but buyers have more choices than they did last year. Homes that have been sitting or have already been reduced can be where first-time buyers find the most room to negotiate.

What Your Monthly Payment Could Look Like

Freddie Mac's survey put the average 30-year fixed rate at 7.28% on October 1, 2026, up from 6.34% a year earlier. Here is a simple example using Peabody's August median:

• Purchase price: $693,641 with 5% down, for a loan of about $659,000.
• Principal and interest at 7.28%: about $4,509 per month (about $4,096 at last year's 6.34%).
• Property taxes: Peabody's FY2026 residential rate is $9.47 per $1,000 of assessed value, or roughly $547 per month on a home assessed at that price.
• Also budget for: homeowners insurance, mortgage insurance with less than 20% down, and condo fees if applicable.

Your lender will give you exact figures. The point of running the numbers early is to set a price ceiling you are comfortable with before you fall for a house.

MassHousing Down Payment Assistance

MassHousing offers down payment assistance to income-eligible first-time buyers in every city and town in Massachusetts, including Peabody. It must be paired with a MassHousing first mortgage, and the home must be your primary residence. Single-family homes, condominiums and 2- to 4-family properties are eligible.

The Three Options

• Up to $30,000 as an interest-free, deferred-payment second mortgage.
• Up to $25,000 as a 15-year loan at 2% APR.
• Up to $25,000 as a 15-year loan at 3% APR.

Which option you qualify for depends on household income compared with area median income. When MassHousing expanded the program statewide in June 2025, it set income limits for Essex County buyers of up to $205,335. Limits can change, so confirm the current figures with a MassHousing-approved lender. A homebuyer education class is required, and it is worth taking early.

The Massachusetts Buying Process, Step by Step

1. Get pre-approved with a lender, and ask whether MassHousing programs fit your situation.
2. Take homebuyer education if you plan to use MassHousing or similar programs.
3. Make an offer. In Massachusetts, an accepted offer is usually followed by a home inspection and then a more detailed purchase and sale agreement.
4. Inspect. A general home inspection, plus specialty inspections as needed, such as radon or pests.
5. Sign the purchase and sale agreement, typically reviewed by attorneys for both sides.
6. Secure your mortgage commitment by the date in your contract.
7. Close. Do a final walk-through, sign your loan documents, and the deed is recorded at the Southern Essex District Registry of Deeds.

Lead Paint in Older Homes

If the home you are buying was built before 1978, the seller must provide the Massachusetts Property Transfer Lead Paint Notification before you sign a purchase and sale agreement, and you have a 10-day right to have the home inspected for lead. If a child under six will live in the home, Massachusetts law requires the new owner to delead or bring the home into interim control within 90 days of taking title.

Writing a Competitive Offer in Peabody

With most Peabody homes selling above list, first-time buyers need to be prepared. You do not need to waive protections to compete:

• Lead with a strong pre-approval, not just a pre-qualification.
• Know your ceiling. Decide your maximum price, and the monthly payment behind it, before the showing.
• Keep terms clean. A flexible closing date or a reasonable deposit can matter as much as price.
• Look at homes with price reductions. With one in five homes seeing a drop, there may be room for terms that work better for you.

Start by browsing Peabody homes for sale, read our first-time buyer resources, or schedule a buyer consultation.

Frequently Asked Questions

What is the median home price in Peabody, MA?

Redfin reported a median sale price of $693,641 in Peabody in August 2026, up 3.6% from a year earlier. About 66% of homes sold above list price, with a median of 20 days on market.

Can first-time buyers in Peabody get down payment assistance?

Yes. MassHousing offers income-eligible first-time buyers in every Massachusetts community up to $30,000 as an interest-free deferred loan, or up to $25,000 as a 15-year loan at 2% or 3% APR. It must be paired with a MassHousing mortgage, and homebuyer education is required.

What is the property tax rate in Peabody?

Peabody's FY2026 residential tax rate is $9.47 per $1,000 of assessed value. On a home assessed at $693,641, that is about $6,569 per year, or roughly $547 per month.

Do I have a right to a lead paint inspection when buying in Massachusetts?

Yes. For homes built before 1978, buyers have a 10-day right to have the home inspected for lead, and the seller must provide the Massachusetts Property Transfer Lead Paint Notification before the purchase and sale agreement is signed.

Do I need to waive the home inspection to compete in Peabody?

No. A strong pre-approval, a clear price ceiling and clean terms such as a flexible closing date can make an offer competitive without giving up the protection of a home inspection.