June Review:
"Stability" is far too strong a word to use, but long-term real estate trends in many metrics demonstrate that we are past inflection points in the market. In plain terms, Cape Cod is digging out of the real estate market impacts from COVID, but the new reality looks different. Let's do some digging of our own.
Inventory continues to build... Take a look at the graph of homes for sale. June ended with 692, which is the best June since COVID. More importantly since 2021 we have seen the return of seasonality (which is normal) and each year has gained inventory compared to the last.
...but not all inventory. When we focus on homes for less than $500k (which is affordable for median income in Barnstable County) the picture looks quite different and a market with a severe inventory shortage is revealed. In fact, all of Barnstable County only had 36 homes for sale at the end of June for less than $500k. This is troubling to say the least and isn't showing the same type of improvement as the larger market. Even more troubling is that Cape Cod only had 278 homes for sale for less than $1,000,000. Imagine being a buyer trying to compete in that market. Much of the gain in inventory is above the $1,000,000, which is unaffordable for the vast majority of buyers, especially first time buyers.
Will the glut of rentals affect the sales market? What a fantastic question and I'm glad you asked. But first, a little background. Cape Cod experienced a revival in its summer vacation season during the pandemic. More people than ever flocked to the Cape because its close proximity allowed travel by car rather than by plane, which we were all nervous about at the time. With the renewed interest came lots of buyers as well. Much of the real estate inventory was snatched up by second homeowners who could suddenly work from home on the Cape. As life has gotten back to normal, many of these homeowners have added their homes to the the summer vacation rental market hoping to cash in on their unused weeks. This has increased supply of rentals while demand has, naturally, started to return to pre-pandemic levels. Where are we now? Many of these second homeowners are likely realizing that full occupancy all summer at outrageous prices is not sustainable. This could push some to list their homes for sale instead of continuing with the headache of managing a rental that isn't paying the bills.
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.
| Apr | May | June | |
| Closed Sales | 224 | 289 | 261 |
| Inventory | 505 | 643 | 682 |
| Median Sales Price | $795k | $769k | $819k |
| Avg Days on Market | 39 | 46 | 41 |
| Avg % of Original Price | 100% | 98.6% | 98.5% |