Sharon quoted in The Vineyard Gazette:

Sharon Purdy, owner of Sandpiper Realty in Edgartown and also a member of the Edgartown Affordable Housing Committee.... Mrs. Purdy searched her database and found 116 properties selling for under $550,000 on the Island. But she said many of these homes need repairs and some are not suitable for year-round occupancy.

She found 23 properties selling for under $400,000, and five selling for under $350,000.

Mrs. Purdy agreed there are less expensive homes available on the market for the first time in years, but she said buying one could result in added expenses. She too has heard rumblings about whether buying a home through an affordable housing group that sets a cap of four per cent equity on the resale of the property, was a good value. She said in fact the comparison is not that simple.

"A year ago you couldn't have posed the question of buying a home on the open market or going through [the housing trust], because you couldn't find anything for under $500,000, never mind $400,000. But people should be careful to put all the pieces together before answering that question . . . the buyer should be aware of all the costs - starting with the down payment," Mrs. Purdy said. As an example, she chose what she called a "nice little house" in Oak Bluffs currently on the market for $399,000. If a buyer came up with a $40,000 down payment, and received a 30-year mortgage at five per cent, they would need to secure a loan for around $360,000.

The monthly mortgage payment would be around $1,900, she estimated, with taxes bringing the average monthly cost to around $2,100, not including insurance. "And remember to make that work, you need to come up with a substantial down payment, and a lot of people have a hard time coming up with that out of pocket," she said.

Sharon is an affordable housing advocate, serving on the Edgartown Affordable Housing Committee, and is an avid supporter of Habitat for Humanity.

The LINK listing system reports that residential sales units were off 18 per cent in January and 33 percent in February while values were down more than 70 per cent that month.

Many sales that are occurring are at least 10 percent below list.

Thus far, there are only 8 recorded sales for March.

And inventory remains high with the expectation of additional availability as the summer season approaches.

Since a large percentage of island listings are second homes owned by people of some affluence, there are not a great many sellers who feel forced to sell.

Sharon is quoted in The Vineyard Gazette on 3/28/09:

"There's a big difference between now and the early '90s when the market went crazy, attracting highly leveraged speculative buyers who went down when the market fell," said Sharon Purdy of Sandpiper Realty in Edgartown.

"This time we have owner/sellers more vested in the Vineyard. They weren't just buying value appreciation, they were buying community living," she said.

Ms. Purdy recently sold a 10-year-old house for its original owner for $598,000. The house might have sold for five to 10 per cent more in 2005, she said, but the long-time owners "put a lot into it and got a lot out."

Watch for more current information as the spring market approaches.

Following is Sandpiper's standard Market Report for the month of February for the island of Martha's Vineyard.

Note that both sales volume and median have declined from January - 33% and 46% respectively.
The vast majority of the current buyer activity remains well under $1.0 with 23 of the 27 sales pending

in that lower price range. We attribute the activity in this area to the fact that listing prices have dropped

considerably; there have also been several foreclosures and short sales at this price point.
Current available inventory is well over 600 and we anticipate a substantial increase in this number as 

spring listings are brought to the market.
Obviously, we are looking forward to the increased activity that the spring season will bring to the island.

 SOLD UNIT COMPARISON

SOLD DOLLAR VOLUME COMPARISON

Following is Sandpiper Realty, Inc.'s monthly Martha's Vineyard Market Report providing a summary of the dollar and unit volume of sales for January 2009. 

As the year progresses, the comparison charts will show you the month to month trend as well as the year to year trend.

The majority of the sales that occurred in January were under $1.0 (72%), while the dollar volume remains high.  (This number is skewed by two high end sales - $7.5 and $11.75 - both Edgartown waterfront properties).  It should be noted that there were no sales between $1.4 and $4.3.  This is consistent with what we have been representing - most sales are under $750,000, nothing is selling in the middle range and a few multi-million dollar sales continue to be made.  At this time, most buyer interest is under $1.0 and we expect this trend to continue for at least the next several months. 

SOLD UNIT COMPARISON

SOLD DOLLAR VOLUME COMPARISON

Following is our standard monthly transaction summary for December 2008 along with a month to month unit comparison for sales from 2005 through 2008 for all property sales on Martha's Vineyard.

The year ended on a positive note as December 2008 sales were up from November 2008 as well as from December of the previous year.  However, at year-end the decline from 2007 was dramatic - the number of sold properties on the Island was down approximately 17% and total dollar volume decreased approximately 30%. 

As we end a year of great instability and move into a new year with a new administration, we hope that the change brings more positive results. 

MARTHA'S VINEYARD SALES - DECEMBER 2008

MARTHA'S VINEYARD REAL ESTATE 2005 - 2008 

By Sharon Purdy
Published in The Martha's Vineyard Times: December 31, 2008

Galileo's Famous Falling Object Experiment applies even to real estate - what goes up, must come down. Every good run of appreciation is inevitably followed by a period of declining sales and values. The Martha's Vineyard real estate market has run in 10-year cycles since I entered the industry nearly 40 years ago.

Statistical data for the past 20 years clearly illustrates what has happened in the Island market in that time period. The graphs included here are an aid to understanding the trends.

Historical trends

In March 2002, The Martha's Vineyard Times published "A Year by Year Review of the Real Estate Industry on Martha's Vineyard" from 1989 through 2001.

The Times graphs showed the decline in values and sales from the late 1980s to the early 1990s, coinciding with the downturn in the economy at that time. They also showed the trend of the recovery that occurred from 1991 to 2001.

We have continued charting the real estate trends from 2001 to 2008 and the results are truly enlightening.

In the 1990s, the growth in dollar value and the number of transactions closely paralleled one another. Our Island economy, and our real estate values, followed the general growth in the national economy. Additionally, Martha's Vineyard gained international recognition when former President Clinton chose the Island as a summer retreat. The media attention brought us many new summer visitors and consequently a whole new pool of real estate buyers. We had a decade of continuous growth in sales and values from 1991 to 1998.

Popular opinion is that the real estate market continued to grow for yet another decade (1998 to 2008), but upon review of the actual numbers of sales, it's evident that the first decline began in 1999, when sales dropped from the all-time high of 1,000 in 1998 to 895 in 1999. And those numbers kept going down - as of November 30, there have been only 299 sales in 2008.

However, the perception of growth continued because the dollar volume continued to climb until 2005 - imagine, fewer sales, more dollars.

Many property owners feel that the market decline began this year. In fact, the decline began in 2006. The highest dollar volume in sales was reached in 2005 and there has been a 55-percent decline since then. Note that this decline began long before the stock market began to tumble.

Consequences

As wealth was accumulated in our economy, demand was created, and prices were driven up. And this wealth changed the face of Martha's Vineyard in many ways, but most evident to me was the loss of many potential buyers who were priced out of the market. An important segment of these lost buyers are the year-round residents of the Island. The enormous growth in the cost of even the smallest parcel of land or the most modest house removed forever the opportunity for many Islanders to purchase their own home.

A second result was the loss of jobs. As is most often the case, when a real estate market booms or busts, so too goes the number of real estate agents. In the 1980s, there were approximately 30 offices on Martha's Vineyard. Today there are more than 80. There has already been some attrition, and there will undoubtedly be more in the months to come.

Future options

While it is impossible to accurately predict what lies ahead, knowing the trends of the past two real estate cycles does provide a legitimate basis for making decisions on how to move forward.

Any property owner interested in selling within the first few years of the next 10-year cycle needs to be apprised of historical trends to understand that a dramatic shift has occurred in the Martha's Vineyard real estate market. We strongly urge all potential sellers to understand current market conditions and the changing values and to consult a professional, experienced realtor about how to best position themselves to accomplish their goals.

At the same time, a prospective buyer should be examining the same historical trends and understanding that they have been provided with a window of opportunity to invest on Martha's Vineyard. There are several conditions favoring the buyer:

• There is more inventory available now than at any time since the market downturn in the late 1980s.
• Price reductions/corrections are occurring with regular frequency.
• Interest rates are lower than they have been in the past 40 years, and financing is readily available to qualified buyers.

An incredible opportunity presents itself to all those who have been waiting on the sidelines for the past decade, wishing they had gotten into the market in the early 1990s!

Sharon Purdy is the owner of Sandpiper Realty Inc. and Sandpiper Rentals Inc. in Edgartown, Martha's Vineyard, Massachusetts. She has been a licensed and practicing agent since the early 1970s and has survived and thrived through several market downturns

Recently, The Martha's Vineyard Times did an on-line Q&A Session with a several Vineyard real estate brokers regarding the state of our real estate market.  Following are the questions they posed along with my response:

Martha's Vineyard real estate sales appear to have fallen a little in volume and a lot in price. Is that your office's experience? If not, what has been your experience? And, what is your office doing that's new to energize the real estate market on Martha's Vineyard? 

Statistical data speaks volumes in this regard. We regularly track market activity so that we're able to properly counsel our clients. The stats that follow clearly show that the number of sales has fallen more than "a little"; Vineyard sales YTD have declined over 40% compared to 2005 and, given that very few sales are currently reported as pending, that percentage is likely to be higher by year end.

It is a little more difficult to precisely track how much prices have come down - we've estimated approximately 15%, and the state association recently came out saying that the statewide number is 15.3%. This will vary by price range, location and other factors so prospective buyers should not expect this type of reduction across the board.

Since the real estate market is, and always has been cyclical, it's important for buyers and sellers to be properly counseled to identify their goals and to act accordingly. Counseling is a major part of our client service.

This has, undoubtedly, been a year of change; our agency is well positioned with nearly 40 years of service as well as previous experience in down markets, giving us a distinct advantage in a market that is always competitive (more than 80 real estate offices on a 22-mile-wide Island).

The fall and the spring have traditionally been the big real estate sales periods on Martha's Vineyard. Are buyers adhering to that longstanding pattern, or is there another pattern developing?

During the recent boom period, the Island real estate industry became more or less a "year-round" business with one season blending into another in terms of productivity - still generating more on-site lookers in the summer months but ongoing activity at all other times of year. The seasonal aspect of real estate returned in full force in the winter of 2007-2008, and we anticipate that this trend will continue until the market turns up again. Remember that the Island never had a "year-round" real estate business until the boom in the 1980s.

What are you telling buyers and sellers about what they should expect in terms of pricing, volume of desirable listings, length of time a seller may expect to see his property on the market?

Location, Condition and Price - These are always the three factors that govern the marketability of a property, days on market etc. This age old adage continues to hold true. It is the duty of good real estate professionals to fully inform and counsel their clients on all three factors as they relate to a specific property.

Inventory has increased more than 40% in three years. Even worse, it's increased by 23% in this year alone - inventory numbers for the past three years are illustrated here:

A bit more positive perspective can be maintained through this downturn by understanding the natural cycle of real estate and making certain that, as either an owner or a potential buyer, you're well informed:

As a PROPERTY OWNER, you should be properly positioned to meet your goals in the most advantageous way possible; seek all professional counsel available to assist you.

As a prospective BUYER, become a leader, not a follower - don't buy when the market is high and you're competing with everyone else, buy when the market is down and you stand out. Get educated and stay tuned....

Below is our standard property transfer and inventory summary for the month of September for the island of Martha's Vineyard. 

There were 35 sales in September, down just 5 from September 2007 but actually up by 11 over August.  The increase can be attributed to activity generated during the summer months. 

The increase also follows the state trend as reported by The Warren Group.  They released numbers at the end of October, stating that "the Bay State housing market got a bounce in September... the first increase in monthly home sales, year-over-year, in 11 months." 

That's the good news... the same article stated that median home prices fell 15.6 % across the state; approximately the same depreciation that we've tracked on the Island.

At this time, the LINKMV service is reporting only 41 sales pending.  If all close, total sales for 2008 for the Vineyard will be down approximately 28% from 2007.

It should also be noted that the available inventory of properties for sale is 819, up 18% from 674 in September 2007.  This number (819) exceeds that at any time during the last market drop from 1989 to 1991.

Below is a four year comparison for Martha's Vineyard Island total year to date sales.  Note that, as of the end of August, there has been a 20% decline since 2007 and a 41% decline since the height of the market in 2005.

Buyer activity this summer on the Vineyard was strong but most, if not all, were looking for better values.  Most buyers are waiting for price reductions and many owners are reducing their price evidenced by 93 reductions on the island during the month of September.

The year of a national election is typically one of some instability in the real estate market; we hope that the choice of a new president will bring some relief of the current economic climate and thus to the real estate market both on and off Martha's Vineyard.  However, we are prepared for a long turn around time unless there is some substantial change in the financial markets.

NORA'S WAY, MARTHA'S VINEYARD ~ A new and exclusive residential area within six blocks of Main Street in Edgartown... a Village attitude has been maintained with paved roads and beautifully landscaped common areas. Yet a more tranquil character has been established with minimum density, each lot is approximately 1.5 acres.

The creation of two quite spectacular ponds provides waterfront for five of the six lots offered, while the sixth lot has a more substantial building envelope for additional privacy and offers a deeded view easement to the major pond.

Underground utilities and town water have been installed and plans completed for private septic systems. The lots are currently being prudently cleared to feature the views.

Thoughtful planning and carefully crafted association covenants will assure the future value of this superb property.

 LOT PRICING

Lot 1 $850,000

Lot 2 $800,000

Lot 3 $900,000

Lot 4 $850,000

Lot 5 $850,000

Lot 6 $850,000

Lot 7 Not available

Lot 8 Not available