Paul Chatelain

Cape Cod Market Update July 2021

June Review: Market Update

    The main driver in the market right now is still low inventory which is currently and will continue to influence the real estate trends on Cape Cod for a while at least.  As you take a look at our infographic, note that many indicators are now trending negative compared to last year. Closed sales, pending sales and inventory are all directly related in this case and reflect the dearth of salable real estate on the market.  Additionally, we have been tracking precipitous declines in "Average Days on Market", not only compared to last year but also since March - with June's average days on market hitting a new low of 23.  As this metric is measured as an average, it tells us homes which had been on the market for many months, or even years, are mostly all sold now and thus no longer skewing this number upwards. In fact, the median days on market in June was 6. Six!  Homes that have languished on the market for 700 days are finally being sold, thus we gain insight into just how ravenous buyer demand is.

 Whichever seat you are in, whether buying, selling or vacation renting, the professionals at Chatelain Real Estate are here to give you the expert advice you will need to make your transaction a success. For more market data check out our blog category Real Estate Trends.  You can also give us a call any time - we look forward to hearing from you.

Recent Market Summary

    Apr     May     June  
    Closed Sales    307     347   404  
   Inventory     394     448     502  
   Median Sales Price   $625k     $630k     $600k  
   Avg Days on Market    57     38     23  
   Avg % of Original Price    101%     105%     104%  

Cape Cod Market Update May 2021

April Review: March Market update

  As we venture into April we can start comparing market numbers from COVID impacted months in 2020; put simply, the market now is far hotter than it was right at the start of the pandemic.  As you can see in our "What's Up & What's Down?" graphic at right market activity is up in every category except for inventory and days on market.  Of more interest is the trend over the past few months.  April saw a significant gain in inventory for the first time since spring of 2020 and median sales price dropped compared to last month (March '21).  As we look to the future we are hopeful that these are indicators inventory will steadily increase thus helping to sate the incredible buyer appetite for Cape Cod homes.  While we can't predict the future we do know that the market is incredibly favorable to sellers and, if you are interested in selling, now is the time.  

 Whichever seat you are in, whether buying, selling or vacation renting, the professionals at Chatelain Real Estate are here to give you the expert advice you will need to make your transaction a success. For more market data check out our blog category Real Estate Trends.  You can also give us a call any time - we look forward to hearing from you.

Recent Market Summary

    Feb     Mar     Apr  
    Closed Sales    264     290     307  
   Inventory     343     346     394  
   Median Sales Price   $560k     $654k     $625k  
   Avg Days on Market    76     76     57  
   Avg % of Original Price    98%     99%     101%  

Cape Cod Market Update April 2021

March Review: March Market update

   The real estate market on Cape Cod continues to be exceptional.  An interesting point in this month's data is that, for the fist time since June 2020, closed sales are actually down compared to the previous year. This suggests, more than anything, that inventory is so low we simply can't keep increasing the closed sales numbers we have been seeing. March 2020, the start of the pandemic, had not yet felt any significant COVID effects and inventory was 1,471 homes. Now, in March 2021 it's just 346. As a result our typical Springtime increase in market activity is being throttled by a dearth in inventory but we are crossing our fingers that this will not last for much longer.  What we can tell you is that the market will be in unpredictable and unprecedented water for some time to come.

But it isn't all bad news friends! Many signs are pointing to a gang-busters summer with vacation rental bookings at all-time highs and numerous other metrics indicative of a busy summer economy on the Cape. Whichever seat you are in, whether buying, selling or vacation renting, the professionals at Chatelain Real Estate are here to give you the expert advice you will need to make your transaction a success. For more market data check out our blog category Real Estate Trends.  You can also give us a call any time - we look forward to hearing from you.

Recent Market Summary

    Jan     Feb     Mar  
    Closed Sales    297     264     290  
   Inventory     453     343     346  
   Median Sales Price   $570k     $560k     $654k  
   Avg Days on Market    67     76     76  
   Avg % of Original Price    98%     98%     99%  

Cape Cod Market Update March 2021

February Review: Feb Market update

  The Cape Cod real estate market continues into unprecedented territory driven largely by dwindling inventory. At the end of February there were 343 homes for sale in Barnstable County, which is down 77% from the same period in 2020 and continues the trend of decreasing inventory we have seen largely unbroken since the start of the pandemic in the Spring of last year. This is a shockingly low number of homes for sale and has driven the "months of inventory" to less than 1 month - considering a "healthy market" has 5 or 6 months of inventory this number is concerning. Furthermore with historically low mortgage rates (though not record low any more) the frenzy for buyers to get into the market ASAP does not seem to be going away any time soon. As vaccination rates increase and life slowly begins to return to some semblance of normalcy we are hopeful that inventory will slowly start to increase leading to a more sustainable real estate market. Whichever seat you are in, whether buying or selling, the professionals at Chatelain Real Estate are here to give you the expert advice you will need to make your transaction a success. For more market data check out our blog category Real Estate Trends.  You can also give us a call any time - we look forward to hearing from you.

Recent Market Summary

    Dec     Jan     Feb  
    Closed Sales    491     297     264  
   Inventory     542     453     343  
   Median Sales Price   $570K     $570k     $560k  
   Avg Days on Market    57     67     76  
   Avg % of Original Price    98%     98%     98%  

Cape Cod Market Update February 2021

January Review: Jan Market update

While the January market was still exceptional, it gave us the first opportunity to breath since May of 2020; however this was not a typical "seasonal slow-down".  Median price was up 33% from this time last year but held steady compared to the previous month, December 2020. Additionally closed sales declined significantly in January, to 297, which is more standard for this time of year. However the abysmal inventory (almost exactly 1000 fewer units than this time last year!) means that, what appears to be a slow down in the market is largely driven by the frenetic pace at which homes are being put under agreement, and therefore taken off the market. In other words, of course the industry saw a slowdown in house sales in January, there were only 453 homes in all of Barnstable County available to sell!

These numbers favor sellers greatly and the best advice we can give a potential seller is -- sell! The desperately market needs an infusion of inventory to start rebalancing and, since construction isn't keeping pace, the existing housing stock has to make up some of this ground.  With a prolonged dearth of inventory we see home affordability continuing to decrease on Cape Cod which will have larger ramifications for both the local economy and the shape of the real estate market on Cape Cod.

Whichever seat you are in, whether buying or selling, the professionals at Chatelain Real Estate are here to give you the expert advice you will need to make your transaction a success. For more market data check out our blog category Real Estate Trends.  You can also give us a call any time - we look forward to hearing from you.

 

 

 

Recent Market Summary

    Nov     Dec     Jan  
    Closed Sales    457     491     297  
   Inventory     724     542     453  
   Median Sales Price   $585k     $570K     $570k  
   Avg Days on Market    63     57     67  
   Avg % of Original Price    98%     98%     98%  

Vacation Rentals on Cape Cod - 2020 Year in Review

2020 was an unusual year to say the least and the vacation rental market on Cape Cod was no exception. Local hotels and motels suffered as many vacationers were either unable to travel or reluctant to be in shared spaces. However, when comparing our experience as short-term vacation rental brokers to the hotel industry, we found the comfort of a clean private vacation rental home to be an incredible draw during the pandemic. Let's unpack a couple points of interest from last season and determine if that may influence 2021 and beyond.

1. Renters were not discouraged from weekly home rentals

Let's review here briefly since March 2020 seems like it was a lifetime ago.  Once significant lock-downs were put in place by the Commonwealth in late March of 2020, short-term vacation rentals were put on hold. This shutdown prevented new leases from being written and left a looming question mark over the entire season. However, in early June when the restrictions on vacation rentals were lifted, the floodgates opened and boy did they ever. Most of June was spent furiously making up for the past 6 months of lost booking time and, as a result, our 2020 summer season was unmatched in recent memory for occupancy. Vacationers, after spending months cooped up in apartments and cities, wanted to get away and felt safer doing it in a professionally cleaned private home, like the ones we manage, than in a hotel, resort or other accommodation where more people congregate and comingle.

Vacationers were suddenly reminded that Cape Cod is a delightful getaway merely a day's drive from anywhere in New England, New York, and even down as far as Washington DC and farther west. The appeal of a sunny beach or private yard where you can spread out and remain socially distant from strangers - while also enjoying a cooling dip every now and again - is something that makes Cape Cod both unique and delightful in the vacation market. 

2. Peak Season and Off-season each got a little longer

In our experience the most popular "peak" weeks for vacation rentals on Cape Cod are the last two weeks in July and the first two weeks in August. Bookings usually are less competitive for the end of August (kids back in school) and earlier in July but last year saw our waiting lists extend to double digits, even for some of these off-peak weeks. 

In addition to the unprecedented summer season, off-season interest was also exceptional in 2020.  In a typical year, before mid June as well as after Labor Day are challenging to fill due to school schedules; yet both of these times saw far higher occupancy rates than usual. With students and parents working virtually,  many were able to either extend vacation time or come to the Cape to escape even during the school year or normal work weeks.  Additionally, we had a number of retirees and remote workers just looking for a change in scenery that filled many of these vacancies.

3. What can we expect in 2021?

Based on how much booking interest we are already seeing so far we expect that Cape Cod will remain top of list for summer vacations for this year at least, and hopefully for quite some time. After 2020's jarring nature of shutdowns, ever changing regulations, and palpable uncertainty, we also expect local businesses to be able to better cope with the nature of operating during a pandemic. Many local shops, restaurants, retailers etc... have spent the past 11 months honing their operations during a pandemic and will be able to manage the summer crowds without the uncertainty of last year. We see Cape Cod continue to be a delightful summer vacation destination and hope you can come and experience it for yourself this year or in the near future.

For more information on a summer vacation rental, see our available homes --HERE--

Cape Cod Market Update January 2021

December Review: Nov Market update

 December's market performance continued the trend we have been seeing since June - massive seasonally adjusted increases in median price, closed sales, and new listings.  Why?  Massive seasonally adjusted decreases in inventory - December 2020 saw only 40% of the inventory of 2019.  But these numbers are offset somewhat by a large increase (33%) in new listings as well - we are seeing supply come on the market in response to increased demand, leading to a 39% increase in closed sales.    So what's the moral?  Depends on which side of the table you are on.  For buyers, don't lose hope!  Surely demand is outstripping supply, but we are seeing historically high numbers of homes come on the market to meet that demand.  Make sure your ducks are in a row and you are ready to pounce when the right home comes on.  For sellers, there has absolutely never been a better time to sell your home on Cape Cod than this very moment.  

Whichever seat you are in, whether buying or selling, the professionals at Chatelain Real Estate are here to give you the expert advice you will need to make your transaction a success. For more market data check out our blog category Real Estate Trends.  

Give us a call any time - we look forward to hearing from you.

 

 

 

Recent Market Summary

    Oct     Nov     Dec  
    Closed Sales    564     457     491  
   Inventory     808     724     542  
   Median Sales Price   $550k     $585k     $570K  
   Avg Days on Market    84     63     57  
   Avg % of Original Price    98%     98%     98%  

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    Cape Cod Market Update December 2020

    November Review: Nov Market update

      While 2020 is remarkable with exceptionally high median sales prices and low inventory, it is beginning to see the usual winter slow down - although this slow down still outpaces anything we have seen in the past.  Median sales price in Barnstable county continues to climb and is up 33% from this time last year.  Additionally, the months supply of single family homes is 1.7, which is a substantially lower than the 5-6 months in a healthy, slightly seller favored, market. As we drill down even more, there are only 0.6 months supply of single family homes priced from $297k - $419k (that is only 57 total homes for sale in this price range in all of Barnstable County).  These factors continue to depress the affordability of homes on Cape Cod which is something that will have broader implications in the future local economy. If you are considering selling your home, now is a great time to do so.  Even with the seasonal slowdown commencing, buyer appetite for homes on Cape Cod remains unsated and we expect the low inventory and exceptionally low mortgage rates to continue driving higher sale prices

     Stay healthy and safe everyone!  Contact us today, we are always glad to discuss the market in further detail if you have questions. For more market data check out our blog category Real Estate Trends.

     

     

     

    Recent Market Summary

        Sept     Oct     Nov  
        Closed Sales    559     564     457  
       Inventory     921     808     724  
       Median Sales Price   $550k     $550k     $585k  
       Avg Days on Market    97     84     63  
       Avg % of Original Price    97%     98%     98%  

    Cape Cod Market Update November 2020

    October Review: Oct Market update

      The Cape Cod real estate market continues its unprecedented year.  Most remarkably is that median sales price remains at $550,000, up 25% from this time last year.  What is driving this increase?  Demand.  Both closed sales and pending sales are up more than 40% from this time last year and inventory is incredibly low, at just under 2 months of inventory.  Stay healthy and safe everyone!  Contact us today, we are always glad to discuss the market in further detail if you have questions. For more market data check out our blog category Real Estate Trends.

     

     

     

    Recent Market Summary

        Aug     Sept     Oct  
        Closed Sales    509     559     564  
       Inventory     1,019     921     808  
       Median Sales Price   $545k     $550k     $550k  
       Avg Days on Market    99     97     84  
       Avg % of Original Price    96%     97%     98%  

    Cape Cod Market Update November 2020

    October Review: Oct Market update

      The Cape Cod real estate market continues its unprecedented year.  Most remarkably is that median sales price remains at $550,000, up 25% from this time last year.  What is driving this increase?  Demand.  Both closed sales and pending sales are up more than 40% from this time last year and inventory is incredibly low, at just under 2 months of inventory.  Stay healthy and safe everyone!  Contact us today, we are always glad to discuss the market in further detail if you have questions. For more market data check out our blog category Real Estate Trends.

     

     

     

    Recent Market Summary

        Aug     Sept     Oct  
        Closed Sales    509     559     564  
       Inventory     1,019     921     808  
       Median Sales Price   $545k     $550k     $550k  
       Avg Days on Market    99     97     84  
       Avg % of Original Price    96%     97%     98%  

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