July Market Report: Cape Cod Market Continues Unprecedented Pace
August 13, 2020 Research & Data CCIAOR Data and Research
The Cape Cod real estate market continues to outperform many other sectors of the Cape’s economy; however, a dwindling lack of homes for sale threaten to set it back in the coming months.
More than 60% of the homes that came on the market in July were under contract by August 10 – and market activity that picked up dramatically in May and June ended with July having record numbers for real estate closings.
“We continue to see tremendous interest in Cape Cod as a place of respite and refuge. We know the housing market can stimulate all other aspects of the economy and look towards that happening here. However, this recovery could be muted if inventory continues to dwindle with less and less homes to buy with each passing month.” said Ryan Castle, Chief Executive Officer of the Cape Cod & Islands Association of REALTORS®.
At the end of July, there were 1,128 single-family homes for sale and 372 condominiums for sale in the Cape Cod & Islands Multiple Listing Service. Last July, there were 2,043 single-family homes and 539 condos listed for sale, a 44.8 percent decrease, and a 31 percent decrease, respectively.
“I’m not sure where we are going to get new inventory from. In most markets, you get it from new construction, but the regulations to build on Cape Cod make new construction virtually non-existent. Existing homeowners will need to list in the near term; long-term solutions could be provided with new production only if we reform the building approval process.” added Castle.
The Massachusetts legislature is doing their part by including Governor Charlie Baker’s ‘Housing Choices’ legislation in the recently passed Economic Development bills; though work on the bill’s specifics remains ongoing.
July Market Report
According to preliminary data released this week by the Cape Cod & Islands Association of REALTORS® (CCIAOR), 690 homes sold in July, 582 single-family homes and 108 condominiums. Median sales price was $498,950 for single-family homes and $336,500 for condominiums. Last July, 434 homes (344 single-family homes and 90 condos) sold at a median price of $435,000 for single-family homes and $264,500 for condominiums.
This represents the most sales that the Cape Cod & Islands Multiple Listing Service (CCIMLS) has data for in Barnstable County, and the Barnstable Registry of Deeds reports the most transactions in July since June 1999.
“We’re seeing more sales, but more notably, more sales for higher priced homes then we ever have. This suggests those with means are making their way to Cape Cod. If they choose to make their home year-round here as they seek to work from home, it has the potential to boost business with other sectors of our economy.” said Castle.
July broke a record for the most volume in real estate transacted on Cape Cod as $457 million was transacted in Barnstable County through the MLS last month. This represents a 93% increase in volume from July 2019 – and is the most volume in a single month by a margin of more than $135 million. The number of homes that went pending at the end of July were 627 for single-family homes and 155 for condominiums – a 57.1 percent increase for single-family and a 40.9 percent increase for condominiums, which will show up in closed home sales in the coming months. Last July, there were 399 pending single-family homes and 110 pending condominiums.The pending sales numbers represent one unit less than a record for Barnstable County in the MLS set in June 2020.
New listings in July for single-family homes were 528 and 135 for condominiums. This is a 10 percent increase, and a 29.8 percent increase respectively from last July, which had 480 new listings for single-family homes and 104 new listings for condominiums.
Cumulative days on market for July increased 5 percent for single-family homes compared to last July, rising from 101 days to 106 days. Condominiums had an 23.6 percent increase in cumulative days on market compared to last July, rising from 89 days to 110 days.
“This seems unusual based on how quickly homes are selling when newly coming on the market, but with demand far exceeding the available supply, homes that have been on the market for several years in some cases are getting fresh looks and are going under agreement. The most extreme example of this is a home that was on the market for more than five years going under agreement in July.” Castle added.
Data released reflects all single-family homes and condominiums in the Cape Cod & Islands Multiple Listing Service for Barnstable County.