Cape Cod, MA Real Estate News: High-End Market Watch, Q1, 2013

Market Highlights After a record number of high-end sales in 2012, the market settled back in the first quarter of 2013 with 6 sales compared to 13 last year. Inventories remain high, especially at the higher end of the price range. Strong performance in other high-end markets across New England suggests a return to a more balanced market, driven by significant price adjustments and pent-up demand. Early reports for the second quarter on Cape Cod suggest a good year for sales.

 

Active Listings and Sales, $2,000,000+, Q1, 2000-2013

On Cape Cod, Massachusetts, the first quarter inventory of high-end listings remains high with 213 listings compared to a recent low of 172 in 2009 and an all time high of 235 in 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 265 active listings at the end of the second quarter, 257 listings at the end of the third quarter, and 192 at the end of 2012.

High-end sales boomed to record levels in 2012. At year-end there were 92 sales compared to 50 at year end 2011. The first quarter of 2013 is starting slowly with 6 sales compared to 3-4 times as many in the period 2005-2008. Last year there were 13 sales in the first quarter. Sales volumes for the beginning of the second quarter are strong and we are hopeful that the spring and summer will see significant improvement.

 

 

Highest And Median Sale, $2,000,000+, Q1, 2000-2013

According to MLS the top sale in the first quarter was 1372-1376 Main Street in Cotuit selling for $4,500,000. In some ways this sale is illustrative of the changes occurring in the market. The property has a beautiful 2 and a half acre waterfront site with 200 feet of sandy beach, but the 1870s farmhouse was perhaps too much of a project for todays buyers. It went on the market in 2009 with a price of $5,995,000 and an assessment of $7,618,300. At the time of sale the assessment was $3,724,800.

The median value for high-end sales in the first quarter 2013 was $2.7 million, 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 6 sales in the first quarter, 3 were in the $2-$3 million range and 2 were in the $3-$4 million range. There are 50 listings above $4 million and 7 listings above $10 million.

Days On Market, Sales, $2,000,000+, Q1, 2000-2013

Days on market for high-end properties sold during the first quarter 2013 were down somewhat to 465 days compared to 536 days in 2012 and 577 days in 2011.

Sales by Town, $2,000,000+, Q1, 2000-2013

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 2013 is small, the geographic spread is broad with sales in Barnstable (2, 1 in Osterville and 1 in Cotuit), Chatham (1), Harwich (1), Mashpee (1), and Provincetown (1).

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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 is collected from Multiple Listing Services and does 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.

For additional information about LandVests brokerage, real estate consulting, and appraisal services, please contact:

Stewart Young | (syoung@landvest.com) | 617-359-8930 or click here to view Stewart's current Real Estate listings.