Cape Cod and the Islands (Nantucket and Martha's Vineyard) had the greatest price appreciation during the pandemic years. Home prices were up more than 50% in those vacation spots. While spending time on Nantucket and the Cape this summer, I couldn't help but wonder if things have cooled down there? Through mere observation it feels less crowded in Nantucket compared to previous summers, and friends were able to get last minute rentals and dinner reservations which are typically hard to come by.

I checked in with real estate agent Julie Brock who sells and rents real estate on the island for Compass. She did confirm that the rental market has softened a bit on Nantucket since people are going back to a more typical work experience in the office and with travel now opened up they are going to far away places rather than stay close to home.

 

She also shared that sales volume is still historically low because there are so few houses for sale on the island. In May of 2023 $100M worth of contracts were signed for the second time in 2023. There was a record sale on the island as well with a house that traded $38.1M! 

Brock also says the under $3 million market is particularly competitive, with properties receiving multiple offers and selling quickly. Even with rising interest rates, properties listed under $2 million continue to move rapidly, with very few new listings.

 

It's a similar story on Cape Cod. Jennifer McCartin of Sotheby's who is based out of Osterville confirmed that short term rentals are down there too, and sales are still brisk with so few houses for sale. Jennifer told me, "at the end of June 2023 there was a 34% decrease in new listings from 2022." Once again the golden rule in real estate applies and buyers are very sensitive to location, price and condition. Those are the properties that sell fastest and on the Cape that means easy proximity to beaches or town centers.

 

Both these Realtors did reiterate that buyers won't jump on just anything (and its the same at home.) Pricing correctly for the market is still important and across the board. We are seeing price reductions now when a home is not selling in a matter of weeks. 

It's been a beautiful week. I have been lucky enough to spend time with my family away and I hope you are able to get some downtime this summer as well. It seems you should not have a problem finding a rental.:) Back in Metro West the real estate market keeps chugging along. See below.

I'm always available and more than happy to provide an analysis for you! Email me at teri@mgsgrouprealestate.com or call at 617-306-3642 to schedule a meeting.
 
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