December 2020 Market Report and 2020 Summary
January 22, 2021 Research & Data
The Cape Cod market completed a remarkable year in 2020, with strong recovery from the initial COVID-19 pandemic beginning in mid-May resulting record-breaking market activity through the end of the year. Unprecedented levels of demand for properties on Cape Cod drove increases in market activity, median sales price and other categories while exacerbating pre-existing pressures on inventory.
"2020 was truly a year unlike any other for Cape Cod real estate. The market broke and then re-broke records in nearly every key measurable category, setting new historic highs for median sales price, dollar volume and transaction volume.” remarks CCIAOR CEO Ryan Castle. “Closed sales ended the year up nearly 20% for single family homes, and median sales price ended the year up 17.8%. Market activity was unusually brisk through the winter, reflecting continued strong demand for homes on Cape Cod."
The strong activity will likely continue into the first quarter of 2021, as pending sales finished up 21.7%, with 1,133 more sales pending at the end of 2020 than at the end of 2019. Months supply of inventory was down 65% at the end of 2020, at 1.4 months, a sign of extremely high demand and critically low supply in the market. On average, agents sold 2.27 times more of the available single family homes in 2020 than they did in 2019, an indication of just how busy the market has been since the initial COVID-19 orders were issued in March.
“Buyers are coming to the Cape in huge numbers from all over, and they are using a REALTOR® to help them find their new home." notes Castle. “Our members have worked harder than ever in this past year to meet market demand. The chief concern of many in the market is that there simply won’t be enough listings to meet demand in the near future. This influx of new residents presents a once in a lifetime opportunity to remake our region’s economy into a more sustainable year-round economy, but only if we have enough housing to meet the demands of all.”
According to preliminary data released last week by the Cape Cod & Islands Association of REALTORS® (CCIAOR), 603 homes sold in December, 491 single-family homes and 112 condominiums. Median sales price was $570,000 for single-family homes and $369,400 for condominiums. Last December, 438 homes (353 single-family homes and 85 condos) sold at a median price of $435,000 for single-family homes and $292,500 for condominiums.
Sales pending at the end of December were 324 for single-family homes and 69 for condominiums – a 42.7 percent increase for single-family and a 25.5 percent increase for condominiums, which will show up in closed home sales in the coming months. Last December, there were 227 pending single-family homes and 55 pending condominiums.
New listings in December for single-family homes were 195 and 64 for condominiums. This s a 33.6 percent increase, and a 52.4 percent increase respectively from last December, which had 146 new listings for single-family homes and 42 new listings for condominiums.
At the end of December, there were 542 single-family homes for sale and 218 condominiums for sale in the Cape Cod & Islands Multiple Listing Service. Last December, there were 1,369 single-family homes and 377 condos listed for sale, a 60.4 percent decrease, and a 42.2 percent decrease, respectively. In 2020, the inventory for single family homes dropped by 37% each month, a trend never before seen in this market.
Cumulative days on market for December decreased 47.7 percent for single-family homes compared to last December, dropping from 109 days to 57 days. Condominiums had a 37.5 percent decrease in cumulative days on market compared to last December, dropping from 128 days to 80 days.
Data released reflects all single-family homes and condominiums in the Cape Cod & Islands Multiple Listing Service for Barnstable County.