Posts Tagged ‘cape cod real estate’

Cape Cod 2021 Real Estate Market Recap for Chatham, Harwich, Orleans & Brewster

Thursday, January 13th, 2022

2021 was a year for the record books. The shortage of available listings continued from 2020, with multiple offers and bidding wars becoming the norm. It was a very frustrating year for Buyers AND for Realtors. I personally do not like when my Buyers to have to bid against other Buyers, dropping normal contingencies like mortgages and home inspections just to make a competitive offer. In the end, many Buyers would seemingly overpay for a home that had not been inspected before purchase. Sometimes this home would be in the millions of dollars, too.

That being said, I do not see this market changing in the near future because there is so much pent up demand. Life is different for people who can now work from home and choose to not live in a crowded city environment anymore. The Cape offers a more relaxed lifestyle and is still very close to Boston; I don’t feel things will slow down in 2022. Many Buyers are also cash customers so the rising rates are not a deal-breaker as some may think. The sales prices continue to rise so if you REALLY want a home on Cape Cod in the near future, you need to jump in and buy sooner rather than later. Here is a summary of the four towns that make up the Lower Cape.

CHATHAM – Median Sale Price increased 44.8 percent in 2021 versus 2020. It went from $863,000 to $1,250,000. There were 242 CLOSED sales of single family homes (SFH), down 14.5 percent from 2020, and 235 PENDING sales of SFH, down 23.5 percent.

HARWICH – Median Sale Price increased 18.7 percent in 2021 versus 2020, from $514,000 to $610,000.  There were 257 CLOSED sales of SFH versus 328 in 2020, a difference of -21.6 percent. PENDING sales of SFH were down 23.7 percent.

ORLEANS – Median Sale Price rose 14.9 percent for SFH in 2021, to $951,000. In 2020 it was $827,500. CLOSINGS sunk 33.8 percent to only 131 SFH sold; compared to 198 in 2020. Finally, PENDING sales were also down 35 percent year over year.

BREWSTER – Median Sale Price for Brewster SFH increased 29.6 percent in 2021 to $700,000, compared to $540,000 in 2020. CLOSINGS were down by 18.6 percent with 175 SFH sold, compared to 215 that sold in 2020. PENDING sales were down 24.9 percent as well.

Finally, DENNIS is not the Lower Cape but I do work in this market and I know it’s a popular destination for a lot of Buyers. So I will give a recap for Dennis, too.  Here the Median Sale Price for a SFH rose 26.9 percent to $533,000. This is compared to $420,000 for 2020. The number of CLOSINGS dropped 12.8 percent to 355, versus 407 in 2020. PENDING sales were also down 13 percent by year’s end.

Keep in mind that Pendings and Closings were not down because it’s a bad market and no one wants to buy. On the contrary there were just not enough homes for sale across the Cape in 2021. If there was more inventory, we would have blown away 2020 numbers by a landslide! I personally sold 35 Million dollars of real estate in the first 6 months of 2021; the second half of the year there was literally nothing to sell.

On a positive ending, we are off to a new start with 2022, so let’s see where this journey takes us!

 

 

2020 Retrospective on Cape Cod Real Estate

Wednesday, February 10th, 2021

2020 was a year that will go down in history.  We experienced a worldwide pandemic that took thousands of lives and affected Life As We Know It. It hasn’t ended yet but now there’s a light at the end of the tunnel.  2020 also saw the busiest real estate market in the history of real estate, at least on Cape Cod. After a very busy start to our normal spring market, that came crashing to a halt with the Coronavirus.  For many weeks nothing happened in real estate. Then, out of nowhere people started seeing a different big picture than they had before Covid 19. They realized they were going to be working from home for a long time and things possibly would never be the same again. Students of all ages suddenly were home attending class online.  Families were living together again and needed separate spaces, ‘Zoom Rooms’ as one client calls it.

Real estate started to pick up in May of 2020 with buyers streaming out of cities and over the Cape Cod Canal.  If this could become the New Normal, why should they wait until retirement age to live where they love and love where they live? If a home office can be anywhere, why not one in a charming village with sandy beaches to walk the dog on your lunchbreak? Where kids play outside and ride bikes and do the things they can’t in a city? Where the air is fresh and you can actually see the stars at night? So, for the rest of 2020 the real estate community worked relentlessly finding homes for all of the buyers trying to relocate here. Each month the reports from our local Association of Realtors smashed previous records. The level of activity was astounding and did not slow down straight through December. An unbelievable end result.

In Barnstable County which covers all the towns on the Cape (excluding Martha’s Vineyard and Nantucket), Pending sales were up 21.7 percent, Closed sales up 19.3, and the Median sale price up 17.9 percent in 2020 versus 2019. The inventory of homes decreased 56.5 percent.  Now for the four towns I primarily focus on:

In Chatham, Closings of single family homes (SFH) rose 53.5 percent from 185 homes sold in 2019 to 284 sold in 2020. Year over year however, the Median sale price increased just 4.6 percent to $862,750.

Harwich saw 328 SFH Closed in 2020, or a 10.4 percent increase over the 297 SFH sold in 2019. The Median sale price was up 11.5 percent year over year, landing at $514,000.

Orleans had 198 Closed SFH in 2020 versus 106 in 2019; a huge increase of 86.8 percent. The Median sale price rose 13.4 percent to $827,500.

Brewster SFH Closed sales clocked in at a 42.4 percent increase; with 225 Sold versus 158 the prior year. The Median sale price was up 12 percent to $540,000.

Keep in mind that these sales took place over roughly 8 months instead of 12 and you will understand how frenzied the market really was. And still is. Thank goodness for our sandy beaches and lunchbreaks walking my dog!