HIGH-END $2,000,000+ MARKET HIGHLIGHTS
- Inventory up 59% (153 vs 96 last year).
- Sales volume down 24% (34 vs record 45 last year).
- Top sale: $12,200,000, 209 Bay St, Osterville.
- Cape Cod’s high-end market is struggling with record low inventories.
- COVID-driven demand is slacking while rising inflation, interest rates, and global uncertainty remain concerns.
- As usual, special properties, expertly presented, reaching out to a broad market with a strong value proposition, will have a competitive advantage.
At the end of the first quarter 2023, the high-end inventory increased by 59% to 153 listings, compared to 96 last year and the record high of 253 listings in 2016. Inventories began improving in Q4 2022 but remain significantly lower than the ten-year average of 197 listings.
Sales volumes are down in the first quarter by 24% with 34 sales compared to 45 sales last year but were better than the ten-year average of 26 sales. Wealthy millennials are driving the market for high-end properties on Cape Cod reflecting their interest in a work-at-home lifestyle. Value-conscious buyers are benefiting from improved internet in secondary markets. Meanwhile COVID-driven demand is less important and negative economic factors are an increasing concern. 2023 is likely to be another strong year for sellers but perhaps not as strong as previous years and will be frustrating for buyers facing limited inventory in some Cape markets.
First Quarter 2023 – Top Sale
Property: 209 Bay Street • Town: Osterville • Selling price: $12,200,000
North Bay waterfront contemporary built in 2022 with 5,400 sq. ft. and 6 bedrooms on a 2.8-acre site. Features include a dock, small beach, pool, cabana, and carriage house. Listed for $12,950,000 and on the market for 13 days. Source: MLS.
First Quarter 2023 – Highest & Median Sale
Days on Market
Days on market for high-end sales in the first quarter increased by 10% to 97 from 88 last year and significantly below the ten-year average of 325. The range in days on market is wide from 2 to 449.
Sales by Town
In the first quarter, 12 of the 15 towns on Cape Cod had sales at the $2,000,000+ level. Barnstable led the pack with 10 sales (5 in Osterville). Provincetown continued to be on a hot streak with 4 sales tying Falmouth and followed by Chatham with 3 sales.
THE BEACH HOUSE
West Falmouth, MA | $11,000,000
For additional information about LandVest’s brokerage, real estate consulting, and appraisal services, please contact:
Click here to to see available Cape Cod Real Estate listings.