Market Report: Nearly Half of All Sales Sell for More Than Asking Price in March
April 19, 2021 Research & Data CCIAOR Data and Research
Homes are routinely selling for at and above, sometimes far above, their asking price in the Cape Cod market, marking the strong demand for homes on Cape Cod, yet showing the little inventory there is to choose from, setting a new and potentially troubling norm for the market as we head into the busy spring and summer market.
Forty-three percent of all transactions that closed in March of 2021 closed above their asking price, compared to 11% in March, 2020 and 9.5% in March of 2019. This trend reflects the extreme imbalance between supply and demand in the Cape market, and sets up an extreme worrying scenario for housing affordability down the line.
“Quite simply, we need all hands on deck to create more inventory on the market. The housing market for buyers is extremely challenging and it relates back to decades of lack of housing production and those who are choosing to keep Cape Cod as their permanent home,” said Ryan Castle, Chief Executive Officer of the Cape Cod & Islands Association of REALTORS®.
The median sales price for a single family home in Barnstable County rose to $653,500, setting a new record high for median sale price in the region.
“It is not an exaggeration to say that it is the best time ever to sell in Barnstable County’s history, but is an extremely challenging time to be a buyer and worrisome to the future of Cape Cod,” continued Castle.
“It is extremely important when buying and selling in this volatile market you are using a REALTOR® who has local market knowledge to guide you through this chaotic market."
New listings in March for single-family homes were 391 and 93 for condominiums. This is a 18 percent decrease, and a 19.1 percent decrease respectively from last March, which had 477 new listings for single-family homes and 115 new listings for condominiums. At the end of March, there were 346 single-family homes for sale and 131 condominiums for sale in the Cape Cod & Islands Multiple Listing Service. Last March, there were 1,567 single-family homes and 446 condos listed for sale, a 77.9 percent decrease, and a 70.6 percent decrease, respectively.
“There is a perilously low number of homes for sale in the market. We were worried last year when homes for sale dipped below 2,000, and to be at 346 single family homes for sale is simply astonishing” Castle said.
Cumulative days on market for March decreased 36.7 percent for single-family homes compared to last March, dropping from 120 days to 76 days. Condominiums had a 23.8 percent decrease in cumulative days on market compared to last March, dropping from 101 days to 77 days.
Sales pending at the end of March were 376 for single-family homes and 102 for condominiums – a 21.3 percent increase for single-family and a 37.8 percent increase for condominiums, which will show up in closed home sales in the coming months. Last March, there were 310 pending single-family homes and 74 pending condominiums.
388 homes sold in March, 290 single-family homes and 98 condominiums. Median sales price was $653,500 for single-family homes and $339,500 for condominiums. Last March, 413 homes (336 single-family homes and 77 condos) sold at a median price of $440,000 for single-family homes and $298,000 for condominiums.
Data released reflects all single-family homes and condominiums in the Cape Cod & Islands Multiple Listing Service for Barnstable County.