record low inventory, still high prices
Cape Cod and the Islands remain a sellers’ market for homes, as people looking for accommodation in June had a historically low number of properties to choose from.
Last month’s inventory was the lowest for about a June in the past two decades, according to the Cape Cod & Islands Real Estate Association, which has tracked it for 18 years. The drop from June 2020 was over 60%, causing what the association has called a “severe shortage of inventory” now.
At the end of June, according to figures from the association, there were 502 single-family homes and 137 condominiums for sale in the Cape Cod & Islands Multiple Listing Service.
In June 2020, 1,343 single-family homes were listed for sale – with a 62.6% drop in June 2021 – and 440 condos listed – with a 68.9% drop in June 2021.
Most people “have probably already sold by this point and taken advantage of the prices,” Ryan Castle, CEO of the association, said in a telephone interview. “There’s going to be a slowdown in sales, especially year over year, because we just don’t have inventory. “
This is especially true in some cities, he says. Sandwich and Harwich have “not had an inventory for so long” that there is huge pent-up demand, he said. “Chatham, Provincetown and Orleans have been so hot over the past year that inventory is pretty depleted, but they’re still pretty hot markets,” he said.
While Castle didn’t say the booming real estate market is past its peak, he said the number of sales for the coming months probably won’t be as high as it has been.
“It would be very difficult for the market to keep pace with the second half of 2020,” he said. “I do not expect (for the market) to break records at the end of 2021” for the number of transactions.
Low inventory plays a role in that, and Castle mentioned a few reasons why there aren’t more homes on the market right now. The first is that some people in the area still use their homes for the summer and therefore don’t want to list them yet.
The other is the problem of people finding a home they want to buy before they can sell, which is harder to do with fewer homes to choose from.
Most current buyers, he said, are looking for second homes or permanent moves – especially people who can work remotely – and realtors don’t see much investment.
There have also been reports of some slowing in aggregate demand, Castle said.
In June, the cumulative days on the market were on average 23 days for single-family homes in the neighborhood and 28 days for condominiums.
“That’s less bids on an ad and maybe a few more days to sell a house than what we’ve seen” in recent months, he said in a written statement when the figures were released. of June. But with the low inventory, “the market (is still) very strong for sellers.”
And for the selling prices.
The association’s figures for June showed 516 homes sold last month: 404 single-family homes and 112 condominiums. The median selling price was $ 600,000 for single-family homes and $ 394,500 for condominiums.
This is a slight drop in sales, but a continued increase in prices from June 2020, when 522 homes (432 single-family homes and 90 condos) sold at median prices of $ 480,750 for single-family homes and $ 323,000 for condominiums.
These figures represent an increase of almost 25% in the price of single-family homes and a 22% increase in the price of condominiums.
Pending sales at the end of June, according to figures released by the association, were 416 for single-family homes and 102 for condominiums.
This represented a 35.8% drop for single-family homes (down from 648 in June 2020) and an 18.4% drop for condominiums (down from 125 in June 2020) which officials said association, will appear in closed home sales over the next few months.
However, strong early spring sales were reflected in figures released last week by the Barnstable County Deeds Register, which showed the real estate sales volume recorded in June was up 22.2% per year. compared to the June 2020 volume.
And prices, as expected, also showed a sharp increase in this report: the total value of sales in June 2021 was up 37.1% compared to the same period in 2020, with the median value of property sales. individuals up 22.6%.
So far, according to the John F. Meade County Deeds Register, sales volume has increased by 32.8%, with individual sales value increasing by 22.8% and total sales value by 68, 5%.
“The ledger reflects all the transactions that have taken place,” Castle said of explaining the difference between the sets of numbers his association and the county recorded for June. “We only reflect what people are selling. “
In a press release, Meade said there were 836 deeds recorded on Barnstable’s ledger in June with reported sale values over $ 50,000, representing a reported value of $ 551,120,108 in real estate sales across the country. county.
This was even more than in May, when Meade reported 743 registered deeds to the register, representing a declared value of $ 539,586,031 in county-wide real estate sales.
The median selling price seen in his office has remained stable: Based on all sales of properties valued above $ 50,000, the median selling price of the Barnstable County property in June 2021 was 515 $ 000. That figure in May was $ 519,000 and $ 519,950 in April.
The property’s median selling price in June 2020 was $ 420,000.
The registry registered 1,775 mortgages (valued above $ 50,000) in June for a total value of $ 753,680,548, according to published figures. By comparison, 684 deeds were registered in June 2020, representing a reported value of $ 402,122,103 in county-wide real estate sales.