June 2021 Saw the Lowest Number of New Listings for a June in 18 Years
July 19, 2021 Research & Data
Here's What You Need to Know About The June Market on Cape Cod:
Lowest Number of New Listings in June in More Rhan 18 Years
Many think 'well inventory is down because everything coming on the market is selling so quick.' Not so fast.
While demand may be shifting, we have not seen a change in consumer attitudes towards listing property, though perhaps the reason for not listing has changed.
"We're hearing reports of demand softening. It's less offers on a listing and maybe a couple more days to sell a house than what we have seen. However, the lack of inventory - and the lack of new listings coming on the market - is happening at the same time demand is softening, keeping the market really strong for sellers." remarks CCIAOR CEO Ryan Castle
Despite a general trend towards an increase in the amount of homes coming onto the market, June 2021 saw the lowest number of new listings for a June in 18 years.
Historically June is on the downward side of the three big new listing months - April, May, and June, after which new listings are followed by a lull in new listings before ramping up again for September and October. This is an indication that the serious inventory shortage on Cape Cod is NOT solely driven by demand.
There simply is nowhere near enough homes on the market, and nothing in the pipeline to replace them when they are sold. It speaks further that new inventory needs to be created to stop the cycle we are in.
On the new listings side, the big month to watch on the horizon will be September to see if it keeps pace with a historically active month.
Pending sales and closed sales are up through the mid year (January through June). On the surface, this is good news, the market is beating the amount of business done in the bellwether 2020, but as you dive deeper, we know it will be hard to finish ahead of 2020.
At this point in 2020, we had only started to see the uptick - and had 2 months of really no activity. Then the market got hot - and we should expect to see the rest of 2021 not be able to keep pace with 2020.
Pending sales: Year to date, single family pending home sales are only up 2.6%. While some will look to this and say the market is outperforming 2020, realize the month of April 2020 was a poor month for pendings and so you are looking at stunted numbers when comparing year over year.
Pending sales of single-family were down more than 35% in June and that is a harbinger of things to come when comparing it to the best real estate market Cape Cod has ever seen.
Closed Sales: As one would expect, the closed sales data shows close to what the pending data does with a lag of about one month. Closed sales for the half year ended 11% up from last year, but closed sales in June were down 6.5% with more expected year over year declines in the coming months.
Condo Sales are Showing Signs of a Boom
Condominium sales are showing signs of real life. Year to date, here are the numbers we are seeing Cape wide:
- Pending sales up 31%
- Closed sales up 26%
- Median sales price up 15%
It is always helpful to look at condo sales (since there is such a wide variety and limited number) in a wide swath like for the first half of the year together. They are showing a healthy market that is probably fueled by the lack of single-family inventory and rising single-family prices as well.