May Saw the Most Price Decreases So Far This Year

One hundred and thirty properties listed in May dropped their price by the end of the month. This represents a significant increase in sales price reductions from the rest of the year.

While the total amount of price reductions is similar to what is typically seen in the market in prior years, the ratio of price reductions to new listings is higher than normal due to the shortage of listings coming on the market making this rise more significant.

For example - in May 2022, 606 homes came on the market and 130 of those dropped their price by the end of the month, meaning 20% of the new listings reduced their price at some point. Compare this to May 2021, when only 136 new listings saw a price reduction out of 747 new listings for the month, which is only 18%.

While it seems like new listing growth is up, much of this growth can be attributed to the fact that listings are staying on the market longer, returning the region to what has historically been our average number of new listings monthly after slogging through months upon months of limited new listings.

Are mortgage rates going up driving more buyers to make cash offers? That is the question we’re asking after seeing a jump in cash buyers during May to more than 40% of the market. We will be monitoring this statistic to see if May’s increase was a blip or the start of a new trend.

Here's the detailed market report:

According to preliminary data released last week by the Cape Cod & Islands Association of REALTORS® (CCIAOR), 384 homes were sold in May, 296 single-family homes, and 88 condominiums. The median sales price was $749,000 for single-family homes and $426,000 for condominiums. Last May, 442 homes (350 single-family homes and 92 condos) sold at a median price of $627,950 for single-family homes and $353,750 for condominiums.

Sales pending at the end of May were 343 for single-family homes and 90 for condominiums – a 15.7 percent decrease for single-family and an 18.9 percent decrease for condominiums, which will show up in closed home sales in the coming months. Last May, there were 407 pending single-family homes and 111 pending condominiums.

At the end of May, there were 428 single-family homes for sale and 85 condominiums for sale in the Cape Cod & Islands Multiple Listing Service. Last May, there were 491 single-family homes and 153 condos listed for sale, a 12.8 percent decrease, and a 44.4 percent decrease, respectively.

Cumulative days on market for May decreased 30 percent for single-family homes compared to last May, dropping from 40 days to 28 days. Condominiums had a 38.3 percent decrease in cumulative days on market compared to last May, dropping from 47 days to 29 days.

Data released reflects all single-family homes and condominiums in the Cape Cod & Islands Multiple Listing Service for Barnstable County.