Market Highlights
- Sales in the first quarter of 2014 were strong with 17 $2,000,000+ sales compared to 6 in the first quarter of 2013.
- Inventories are at record high levels, especially at the higher end of the price range.
- Pent-up demand and a strong stock market are fueling the market, but excess inventory means sellers must compete for buyers.
- Early reports for the second quarter on Cape Cod suggest a good year for sales.
Active Listings and Sales, $2,000,000+, Q1, 2000-2014
On Cape Cod, Massachusetts, the first quarter inventory of high-end listings is at record levels with 246 listings compared to a recent low of 172 in 2009 and a previous all time high of 235 in the first quarter of 2011. Typically the listing inventory grows through the first three quarters and then declines in the fourth quarter as sales are closed and properties are taken off the market. Last year there were 213 listings at the end of the first quarter, 258 at the end of the second quarter, 251 at the end of the third quarter, and 215 at the end of 2013.
High-end sales boomed to record levels in 2012 and declined by about 20% in 2013. The fourth quarter of 2013 was off by about 50% from the previous year, but the first quarter of 2014 has exploded with 17 sales compared to 6 in the first quarter of 2013. The second quarter is continuing to show strong performance with 16 properties under contract and we are hopeful that the spring and summer will see significant improvement.
Highest And Median Sale, $2,000,000+, Q1, 2000-2014
According to MLS the top sale in the first quarter was 315 Main Street in Osterville selling for $12,400,000. This 17 acre waterfront estate includes an 8,000 square foot completely renovated 1890’s main residence with a 5 car garage with apartment, beach house, and pier. It went on the market in 2007 with a price of $19,800,000.
The median value for high-end sales in the first quarter 2014 was $2,850,000, about on par with median sale prices over the past decade. The high-end market on Cape Cod is predominately in the $2-$3 million range. Of the 17 sales in the first quarter, 9 were in the $2-$2.9 million range and 4 were in the $3-$3.9 million range. There are 45 listings above $4 million and 10 listings above $10 million.
Days On Market, Sales, $2,000,000+, Q1, 2000-2014
Days on market for high-end properties sold during the first quarter 2014 were down significantly to 374 days compared to 465 days in 2013 and 536 days in 2012.
Sales by Town, $2,000,000+, Q1, 2000-2014
Starting around 2002 the high-end market on Cape Cod broadened as the perennial top markets were perceived as being too expensive and as buyers bid up the prices of special properties in other towns. While the volume of sales in the first quarter 2014 is small, the geographic spread is broad with sales in Barnstable (4), (3 in Osterville and 1 in Barnstable Village), Bourne (2), Chatham (4), Eastham (1), Falmouth (2), Mashpee (2), Orleans (1), and Provincetown (1).
The LandVest High-End Market Watch is a periodic review of select high-end markets in Maine, Massachusetts, New Hampshire, Vermont and the Adirondacks. Market data are collected from Multiple Listing Services and do not include private listings. LandVest makes no representation as to the accuracy of the data and therefore is not responsible for any actions taken as a result of use of or reliance on this information.
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please contact:
Stewart Young | (syoung@landvest.com) | 617-359-8930
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