October Cape Cod Market Report: Tax reform debate could lead to market uncertainty

WEST YARMOUTH, MA—(November 13, 2017) According to preliminary data released last week by the Cape Cod & Islands Association of REALTORS® (CCIAOR), 452 homes sold in October, 357 single-family homes and 95 condominiums. Median sales price was $429,000 for single-family homes and $305,000 for condominiums. Last October, 493 homes (409 single-family homes and 84 condos) sold at a median price of $391,520 for single-family homes and $333,750 for condominiums.

Year-to-date, 3,523 single-family homes have sold for a median price of $397,000 and 890 condominiums have sold for a median price of $275,000 – compared to last year through October, 3,645 single-family homes had sold for a median price of $373,363 and 847 condominiums had sold for a median price of $275,000.

“In the next few weeks, we expect more uncertainty in the marketplace than we normally see this time of year. Traditionally, we may see a surge of closings for buyers trying to get their purchase done in the calendar year for tax or other purposes, but the conversation in Washington over tax reform is producing uncertainty and buyers could potentially hold their purchase off to see what their tax implications of buying maybe.
Tax reform could have major impacts on the Cape market – from the elimination of mortgage interest deduction for second homes; the capping of mortgage interest for primary residents at $500,000; the capping of property tax deductions at $10,000; and the change to having to live in a home 5 years for the capital gains exclusion. These impacts are real and drastic to the Cape Cod real estate market and could chill the appetite for home ownership on the Cape.” notes Gregory Murphy, President of the Cape Cod & Islands Association of REALTORS®.

Sales pending at the end of October were 361 for single-family homes and 96 for condominiums – a 11.7 percent decrease for single-family and a 1.1 percent increase for condominiums, which will show up in closed home sales in the coming months. Last October, there were 409 pending single-family homes and 95 pending condominiums.

 

At the end of October, there were 2,198 single-family homes for sale and 469 condominiums for sale in the Cape Cod & Islands Multiple Listing Service. Last October, there were 2,914 single-family homes and 675 condos listed as active for sale.

 

Data released reflects all residential and condominiums in the Cape Cod & Islands Multiple Listing Service for Barnstable County.

 

More detailed information and town by town reports are available at CapeCodRealEstateStats.com

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2017-11-14T15:45:07+00:00

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