August Market Report - Cape Cod Real Estate Sets Record for Median Sales Price
September 18, 2020 Research & Data CCIAOR Data and Research
The Cape Cod real estate market continued its expected surge in August moving well past the pent-up demand from the 'Stay at Home' order and continuing to set records - as June and July did - for residential real estate sales in Barnstable County.
The median sales price for August - $545,000 for a single-family home - set a record for a single month in Barnstable County. In addition, buoyed by the second most transactions in a single month (the first being in July 2020) since 2000, the most volume was transacted in residential real estate at more than $464 million in the month, breaking the record set just weeks ago in July, 2020.
However, CCIAOR CEO Ryan Castle notes that median sales price is often misunderstood.
"While many view shifts in median sales price as how much more expensive a particular home has become, it really reflects the activity in the marketplace for that month – it’s simply a measure of a window in time. While we are seeing individual price appreciation at an appreciating pace, individual home appreciation is not rising as quick as the median sales price would indicate,” Castle said.
According to preliminary data released last week by the Cape Cod & Islands Association of REALTORS® (CCIAOR), 655 homes sold in August, 509 single-family homes and 146 condominiums. Median sales price was $545,000 for single-family homes and $363,750 for condominiums. Last August, 487 homes (390 single-family homes and 97 condos) sold at a median price of $430,500 for single-family homes and $349,000 for condominiums.
“The 25% year over year median sales price increase is a reflection of a new crop of buyers seeking more expensive homes then what has been the norm on Cape Cod, and rising median sales price more rapidly. The median home sold this August is not the same home as the median home sold last August as the demographics of buyers have shifted,” Castle added.
Sales pending at the end of August were 607 for single-family homes and 152 for condominiums – a 71 percent increase for single-family and a 33.3 percent increase for condominiums, which will show up in closed home sales in the coming months. Last August, there were 355 pending single-family homes and 114 pending condominiums.
At the end of August, there were 1,019 single-family homes for sale and 333 condominiums for sale in the Cape Cod & Islands Multiple Listing Service. Last August, there were 2,096 single-family homes and 530 condos listed for sale, a 51.4 percent decrease, and a 37.2 percent decrease, respectively.
"The historic low levels of homes for sale could damper sales unless more inventory comes to the market. It is hard to see how we could get lower inventory than the two and a half months of inventory we're currently seeing, but that does usually happen as we get closer to the end of the year. Now is the time to list your home for sale if you want to make a move."
Data released reflects all single-family homes and condominiums in the Cape Cod & Islands Multiple Listing Service for Barnstable County.