Real Estate Trends

Cape Cod Market Update January 2020

December Review:

The numbers are in for December 2019.  When considering the fall market we see that closed sales have remained relatively consistent but new listings have not kept pace so inventory has been declining since September.  Compared to December in 2018, inventory is down approximately 21% and new listings about 17%; this coupled with the 2019 fall data signals a likely dearth of available listings in the near-term.  We do expect this time of year to be slow and with exceptionally low mortgage rates as well as ongoing wage growth in the market at large experts are expecting buyer activity to remain healthy into 2020.  While national new construction was on the rise in 2019, lack of inventory continues to be a problem in the local Cape Cod market as is partially signaled by a decline of 5.5% in the affordability index from December 2018.  We also went back and checked the single-family-home median sales price since 2016: $365k,   2017: $380k,   2018: $400k.  The numbers are not yet complete on 2019, but we expect them to follow this trend for the near future unless changes are made to local housing policies and/or larger economic impacts hit the Cape.  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

    Oct     Nov     Dec  
    Closed Sales    379     334     350  
   Inventory     1,975     1,700     1,346  
   Median Sales Price   $440K     $439K     $436K  
   Avg Days on Market    103     109     109  
   Avg % of Original Price    94%     93%     93%  

Cape Cod Market Update December 2019

November Review:

 The seasonal slowdown was in full swing in November.  When considering the past three months (Sept-Nov) we see a normal decline in Median Sales Price as well as Inventory.  We also see the related increase in Average Days on Market since buyers and sellers are now caught up in the holiday season and some homes take a bit longer to find a buyer.

  When comparing year-over-year single family homes we are seeing closed sales, inventory and new listings all down by more that 10% compared to this time last year.  National economic trends are generally strong and mortgage rates at local banks are hovering around 3.75%.

  If you are considering getting your home ready for the Spring market, now is the time to spruce things up a bit.  Check out our advise for 5 Things to do Before Listing as well as our insights into investing in home improvements before you sellContact us today with any questions, we are always glad to help.

For more market data check out our blog category Real Estate Trends.

Recent Market Summary

    Sept     Oct     Nov  
    Closed Sales    339     379     334  
   Inventory     2,090     1,975     1,700  
   Median Sales Price   $452K     $440K     $439K  
   Avg Days on Market    98     103     109  
   Avg % of Original Price    94%     94%     93%  

 

Cape Cod Vacation Rentals Update Fall 2019

Vacation rentals on Cape Cod have been undergoing significant changes in the past 9 months.  Here is a quick update on the recent developments.  For more information we encourage you to visit the Massachusetts website of FAQs here 

What is a short-term rental?

According to the Commonwealth, "A short-term rental is an occupied property that is not a hotel, motel, lodging house or bed and breakfast establishment, where at least 1 room or unit is rented out by an operator through the use of advance reservations. A short-term rental includes an apartment, house, cottage, and condominium. It does not include property that is rented out through tenancies at will or month-to-month leases. It also does not include time-share property. A short-term rental is a rental that is not for more than 31 consecutive calendar days. The new law imposes state and local excises on short-term rentals of property for more than 14 days in a calendar year, starting July 1, 2019 for which a rental contract was entered into on or after January 1, 2019.  "

Taxes can be as much as 17.45%

All municipalities in the Commonwealth are subject to the 5.7% room occupancy tax.

Towns can choose to impose two additional taxes.  First is the local excise tax which can be anywhere from 0 to 6%.  Second is a Community Impact fee which can be anywhere from 0 to 3%.  Check the database here for your town or see below for all 15 Cape Towns.  Additionally the Cape Cod and Islands Water Protection Fund excise is 2.75% (currently no town on Nantucket or the Vineyard are subject to this).

Owner Requirements

Owners are now obligated to carry $1 million in liability insurance on each property.  Each property must be registered BY THE OWNER through MASS tax connect and tax must be remitted by the 20th of each month for the previous month's stays.  A full list of owner requirements is listed here.

What's being considered for the future?

As of right now (11/7/2019) Community Impact Fees have not been implemented in any Cape Cod Towns. However it behooves owners to read the First and Second Local Options of this FAQ from the State.  In these instances towns can add up to 3% Community Impact Fees if units are professionally managed.  If a tax of 17.45% sounds unreasonable, please consider speaking with your local representative to share your opinion.

Municipality Current Rooms Tax Rate Current Rooms Tax Effective Date Pending Rooms Tax Rate Pending Rooms Tax Effective Date Short-term Rental Community Impact Fee Rate Short-term Rental Community Impact Fee Effective Date Short-term Rental Professionaly Managed Option Short-term Rental included within 2-3 Family Home Cape & Islands Water Protection Fund Tax Rate Cape & Islands Water Protection Fund Effective Date
Barnstable 0.06 10/1/2010             0.0275 7/1/2019
Bourne 0.06 7/1/2019             0.0275 7/1/2019
Brewster 0.06 7/1/2010             0.0275 7/1/2019
Chatham 0.04 7/1/1988             0.0275 7/1/2019
Dennis 0.06 1/1/2020             0.0275 7/1/2019
Eastham 0.04 1/1/1987             0.0275 7/1/2019
Falmouth 0.05 1/1/2020             0.0275 7/1/2019
Harwich 0.04 1/1/1987             0.0275 7/1/2019
Mashpee 0.06 10/1/2019             0.0275 7/1/2019
Orleans 0.06 7/1/2019             0.0275 7/1/2019
Provincetown 0.06 7/1/2010             0.0275 7/1/2019
Sandwich 0.04 7/1/1986             0.0275 7/1/2019
Truro 0.04 12/1/1985             0.0275 7/1/2019
Wellfleet 0.04 7/1/1986             0.0275 7/1/2019
Yarmouth 0.06 7/1/2010             0.0275 7/1/2019

 

Curious about finding a rental management partner in Chatelain Real Estate, contact us today. 

Take a look at what is for sale throughout Cape Cod here

Looking for a vacation rental on Cape Cod, click here?

 

Cape Cod Market Update November 2019

https://campaign-image.com/zohocampaigns/369239000002508004_zc_v18_market_update_oct_2019.jpgIn October Barnstable County saw more of the fall slowdown with a significant reduction in new listings compared to this time last year.  Additionally new listings are down 5% year-to-date continuing the trend of historically low numbers of homes for sale.  Despite this the October market largely kept pace finishing with 5.7 months supply of inventory available.  Remember that 6 months is the magic number for a sustainable market between buyers and sellers.    Single family homes have not seen significant gains in median price since June and the affordability index has gained 20% since the start of the year signaling good news for buyers.  In addition continued low mortgage rates (~3.625% at time of writing) helps buyers looking to get into the market.  

  We will continue to keep our eyes on the amount of inventory as well as the months of supply available Cape-wide.  However we can't stress enough how the entire County is not representative of market niches.

 

Recent Market Summary

    Aug     Sept     Oct  
  Closed Sales     382     339     379  
  Inventory     2,082     2,090     1,975  
  Median Sales Price     $431K     $452K     $440K  
  Avg Days on Market     90     98     103  
   Avg % of Original Price     94%     94%     94%  

Cape Cod Market Update October 2019

September Review:

  The fall market is looking lackluster now that the September numbers are in.  With new listings, closings, and inventory down we did not see as significant an amount of activity in the market as this time last year.  With inventory countywide at a 6 month month level,  neither buyers nor sellers see a great advantage currently.  Not all markets are seeing this balance though so don't hesitate to check in if you are curious about a certain subset of the market (i.e. towns or price ranges).  Additionally, the lack of new listings may lead to a further drop in supply of inventory but fewer buyers in the market may not result in much change going into the usually slower holiday season.  Nationally a strong economy and low mortgage rates are helping to keep the real estate market active.

For more market data check out our blog category Real Estate Trends.

Recent Market Summary

    July     Aug     Sept  
    Closed Sales    341     382     339  
   Inventory     2,044     2,082     2,090  
   Median Sales Price   $435K     $431K     $452K  
   Avg Days on Market    101     90     98  
   Avg % of Original Price    94%     94%     94%  

 

Check out these two blogs for more valuable insight into real estate on Cape Cod

 

  5 Things to do before listing your home  

    Shellfish Season is Here!  

      
   

Cape Cod Market Update September 2019

August Review:

   The trends in the Cape Cod market this year seem to be delayed approximately a month compared to last year.  In other words, August this year compares more closely with July last year.  We felt this in the Spring and now again in the late Summer as the August data seemingly reflects what is typically the July slowdown (whereas July was as busy as June the year before).  We see this normal seasonal slowdown reflected in the chart at right in that closed sales were up while new listings and inventory were all down.  We don't think it is worth ringing any alarm bells but the lack of new listings in August could lead to a more competitive market for buyers in the fall.  The most relevant factors influencing the real estate market right now are: historically low interest rates, overall economic trends looking favorable (at least in the near term), Barnstable County inventory at a healthy level of 6 months.  On another note we were pleased to see the affordability index move towards improving affordability in the single family home market in August, an increase in affordability of 7.5% compared to this time last year.  For more market data check out our blog category Real Estate Trends.

Recent Market Summary

  June   July     Aug  
    Closed Sales  361   341     382  
   Inventory   2,067   2,044     2,082  
   Median Sales Price   $450K     $435K     $431K  
   Avg Days on Market  106   101     90  
   Avg % of Original Price  95%   94%     94%  

 

Check out these two blogs for more valuable insight into real estate on Cape Cod

 

Storm Preparation on Cape Cod

   Our Take: Are sharks really taking a bite out of the Cod Cod Summer Rental Market?

      

Cape Cod Market Update August 2019

July Review:

   Compared to this time last year, July saw only slight variation in four of the six metrics we investigate for this blog (pictured at right).  Days on market was up significantly compared to this time last year; however it was down compared to June.  Additionally the number of new listings was down nearly 15% compared to last year and lost about 9% compared to June this year.  With all of this in mind we are seeing a normal decline in market activity due to the seasonality of our area.  Nationally, mortgage interest rates are exceptionally low yet affordability continues to be a serious concern.

 

 

Recent Market Summary

  May June   July  
    Closed Sales   441  361   341  
   Inventory    2,032  2,067   2,044  
   Median Sales Price   $427K     $450K     $435K  
   Avg Days on Market   101  106   101  
   Avg % of Original Price   95%  95%   94%  

 

Check out these two blogs for more valuable insight into real estate on Cape Cod

 

   Our Take: Are sharks really taking a bite out of the Cod Cod Summer Rental Market?

    Owning a Septic System on Cape Cod

      

Our Take - Cape Cod Summer Rentals 2019

Are sharks really taking a bite out of the Cape Cod summer rental market?

The Boston Globe published an article on July 28th 2019 by Stephanie EbbertCape Cod rentals are having an unexpectedly slow summer.  As a quick synopsis the article states that summer vacation rentals are not filling up this year and hotels are down 5% (the data goes through May 31st only).  The article posits several explanations including the new short-term rental tax, increasing shark populations around the Cape, lousy Spring weather, and larger market and economic trends.

Our take on this matter: sharks and overall market conditions have been gradually applying pressure on the rental market for years: the sharks were here last year and the year before and some anecdotal evidence suggests they may be an attraction for some tourists.  The main culprit of the precipitous decline in bookings in 2019 is the new 12.45-14.45% rental tax.  Given the evidence that rentals are down across the state indicates this is not an issue solely on Cape Cod.  When a vacationer rents for $3000/wk the tax adds around $400, depending on the town.  Couple this with what may be the indications of a slowing economy and people may be spending their money closer to home this year and waiting to see how much certainty the future holds for their pocketbooks.

If you are getting sick of renting but still want to visit the Cape, give us a call about buying.  Then every season can be beach season!

Cape Cod Market Update July 2019

June Review:

Compared to this time last year median price and inventory are both up.  However Inventory compared to May is a small gain of only 25 homes.  It looks like the market entered the summer slow-down a bit earlier this year (usually it hits in July) with closed sales and new listings both down in June.  Apparently sellers were already getting ready for the beach last month.  The ever growing point of concern, not only on the Cape but nationally as well, is the affordability and availability of homes.  The Realtor professional publication states that the inventory shortage has reached 2.5 million homes.  Through normal economic interactions, such a severe deficit in available housing will continue to drive prices up as well as affect the rental markets (see California and New York's new rent control regulations).   The Realtor article features a few solutions and while none are new they will all be important to relieving the housing shortage.  Read more about ADUs, Opportunity Zones and more here.

 

Recent Market Summary

  Apr May June
    Closed Sales   331   441  361
   Inventory    1,982   2,032  2,067
   Median Sales Price   $425K     $427K   $450K
   Avg Days on Market   120   101  106
   Avg % of Original Price   94%   95%  95%

 

   Fun things to do this summer

    Top 5 Dog Walks on Cape Cod 

      

Cape Cod Real Estate Market Update June 2019

May Review:

  Year over year the inventory is up 6.1% and has also been steadily increasing since January.  With new listings down from last year and flat compared to last month we will be keeping an eye on how this will affect inventory going forward though.  What will also be influencing the market for the foreseeable future is the incredibly low mortgage rate.  At the time of writing Cape Cod Five and the Cooperative Bank of Cape Cod both have their 30 year fixed mortgage rates at 3.875%, which is exceptionally low and certainly an aid to buyers.  Furthermore the median price for single family homes is essentially flat from this time last year and only slightly up from last month.  Do we know what the future holds?  Nope.  But we can say that right now the market is fairly well balanced between buyers and sellers which means it is a good time to both sell and buy.

 

Recent Market Summary

  Mar Apr May
    Closed Sales   291   331   441 
   Inventory    1,837   1,982   2,032 
   Median Sales Price   $421.5K     $425K     $427K  
   Avg Days on Market   120   120   101 
   Avg % of Original Price   93%   94%   95% 

 

    Rainy Day Activities: Spring Cleaning   

    Check out a video clip featuring Paul and Dennis'   

    initiative to keep the beaches clean