Blog :: 12-2019

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. 

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?