Cape Cod Real Estate Sets New All-Time Median Price.
According to preliminary data released on Friday November 16th, Cape Cod Real Estate Sets New All-Time Median Price. The Cape Cod and Islands Association of REALTORS® (CCIAOR) reported a $49,900 increase over last October's median price for single family homes. The condominium median sale price was also above last October by $47,650. This is only 7 more total homes sold in t2018 than in 2017. The median price increased, even as more inventory comes on the market. Demand has stayed strong and prices have gone higher, but read on.
Comparing 2018 to 2017 Year-to-Date sales in number of units, 3,372 single-family homes have sold in 2018 which is 184 less houses than in 2017. This still resulted in an increase in the median price for a house on cape cod by almost $30,000. Similarly, 19 fewer condos sold in 2018 compared to 2017, with the median price also higher by $25,000.
This trend appears to be continuing so far. Based on pending sales at the end of October 2018, there were 362 for single-family homes and 89 for condominiums, which is a 6.7 percent decrease for units of single-family homes and a 11.9 percent decrease for condominiums. We won't know whether the average median price on Cape Cod will stay as high as it appears to be trending until those units complete the closing process in the coming months. The average closing in MA is 45-60 days.
While number of homes available appears to have stabilized at around a six and seven month inventory, that number may increase because more properties than last year are starting to become available. There were 538 new listing for single family homes in October, which is a 10% increase over last year. Likewise, the number of condos listed for sale in October 2018 also increased about 5% over 2017.
Coupling the above data with the days on the market for single-family homes and for condos, experienced Cape Cod real estate agents are trying to forecast in to 2019. Both single family homes and condominium listings we're not on the market as long in 2018 as they were in 2017. So far this year the data shows increasing prices with fewer units sold, so it would seem that The Cape is still in an upswing.
Why are prices still moving higher? In talking to experienced agents, and listening to current buyers, property condition is still a major factor in how long a property is on the market. The previous adage of location location location, has become condition price location. Many buyers in the Cape Cod market want the property they are buying to be already current and in move-in condition. When that occurs, they have been willing to pay an increased price in order to avoid the hassle with renovations and repairs.
Something to keep in mind is that when inventory increases, prices usually stabilize or decrease. The next few months will be interesting to watch if inventory increases at the same levels it did in October 2018. Much of the real estate activity has traditionally occurred on Cape Cod between September and December.
If you are thinking of buying or selling on Cape Cod, Holly and I are available to interview you as a buyer or seller. We're prepared when you're ready. This year we have closed over $10,000,000 in transactions.
The above market information is based on the sales of all residential family homes and condominiums in the Cape Cod & Islands Multiple Listing Service for Barnstable County