Blog :: 12-2018

After more than 25 years of living, working and playing on Cape Cod we have a lot to share about the area.  Our blog topics run the gamut from fun things to do, working with contractors, and homeownership tips and tricks, so check back frequently to see what's new.  If you have questions or would like to learn more about Cape Cod or owning property on this beautiful peninsula please contact us for more information and to set up a showing for any listing. 

MA Short Term Rental Tax

Massachusetts Governor Baker recently signed into law a change to the taxable nature of short term rentals.  This affects many of the property owners on Cape Cod who rent for less than 31 days in the summer months.  Some relevant information can be found on the Massachusetts Association of Realtors website here but a quick synopsis is as follows:

Highlights:

New Tax Changes:

  1. State: 5.7%
  2. Local: up to 6% (6.5 for Boston)
  3. Cape Cod & Islands: includes additional 2.75% to fund Cape Cod and Islands Water Protection Fund 
  4. A community impact fee of up to 3% may be assessed locally on professionally managed properties (Owners of two or more units in one town)
  5. Takes effect July 1, 2019.  Bookings made before January 1st, 2019 are exempt.
  6. Realtors who manage the rental bookings and collect the rent will likely be responsible for collecting the tax.
  7. Guidance and more details will follow from the IRS and state authorities.

We'll be keeping a sharp eye on this matter and updating you when we learn more information.  As always feel free to contact us with questions about how this will impact your rentals or your property management needs.

December Market Update

November Review: 

   After a busier than usual late fall we are starting to see the seasonal cooling off around the holidays.  Closed sales, inventory and median sales price were all down in November as both sellers and buyers tend to back off this time of year.  We also note that with 5.8 months supply of inventory the market is healthier compared to November last year (5.3 months).  The strong economy and hints from the Fed that rate hikes may be slowing down is good news for a healthy local market.  However the low affordability index (meaning the median house price costs more than the median income can afford) continues to be a point of concern.

 

Recent Market Summary

  Sept Oct Nov
Closed Sales 370 378 308
Inventory 2,291 2,252 1,968
Median Sales Price $437K $480K $435K
Avg Days on Market 89 98 100
Avg % of Original Price 95% 94% 94%

 

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