LANDMARKS REAL ESTATE
Third Quarter Sales Commentary
Sean D. Federowicz, M.B.A.
Broker, Owner, Realtor
Happy fall to one and all! It is hard to believe that another nine months are in the books, yet we are again reminiscing over what was a near perfect summer on Martha's Vineyard. The weather was idyllic, and the usual seasonal events delivered enjoyment to their patrons. The ferries and beaches were non-stop full, and the real estate market on-Island finally appears to have caught up with the current pace found in most primary markets. The typical real estate search activities didn't begin in earnest until late June due in part to Mother Nature's delayed arrival with warm weather. But we have been actively in the field with clients ever since and envision a productive fall market still before us.
Despite the continued geo-political and economic issues, prudent investment decisions, and lifestyle choices remain overriding considerations among buyers of Martha's Vineyard real estate. With relative value, choice, compelling lending rates and options still available, we're anticipating continued search and acquisition activity through 2015.
Without question, the dynamics among buyer and seller have returned to a more normal exchange between those who have it, and those who want it. And while the confluence of events has enabled the Vineyard market to gain traction this season, it still has room to go before emulating the conditions found among many primary markets within the region. But the general market condition and sentiment on-Island has notably become more competitive, active, and favorable toward consummating transactions.
We have previously referred to the Vineyard's market bottom as having occurred in Q4 of 2011. With the consistent degree of activity we have experienced year to date and year-over-year, we expect our micro-market to continue "normalizing" and follow both the region's primary and second home market trends.
Please consider the following;
- Q3 realized the conveyance of 127 properties, which is up 34% for the same period year-over-year.
- The number of properties for sale, however, has remained relatively constant for nearly six years. Currently, there are 649 total listings representing $1.181B. Thus far in 2015, 318 residential homes have sold island-wide, which is up 14.8% as compared to the 277 sold in 2014 for the same period.
- At the Quarter's close, year-over-year median home sale prices increased 20% from $575,000 to $691,000, with average home sales prices also increasing by a stellar 44% from $929,444 to $1,342,036.
- On average, YTD home sales on-Island have transacted at approximately 95% of their asking price while realizing 122% of their tax assessment. This is a significant change from prior year sales' metrics, where the former trend of closed transactions previously illustrated a strong correlation between a town's tax assessment and the ultimate sale price. This correlation has now changed and suggests that sale prices exceeding assessed values have returned to the market.
Acquiring real estate in this largely second-home market is often a discretionary decision. However, given the continued heightened levels of inventory across all price segments coupled with continued low-interest rates, this arguably continues to be one of the most attractive times to acquire an Island property for both financial and emotional returns. There will come a time, and likely now sooner than later, when this degree of opportunity will become out of reach for some. But Martha's Vineyard, compared to many like markets, continues to afford an attractive opportunity for those willing to make a commitment to her.
Please visit www.mvlandmarks.com to view a comprehensive list of all available Island listings. If you would enjoy having immediate and free, real-time access to our ever-evolving inventory of Island listings, please contact us to receive access into LINK, the Island's local MLS. And as always, do not hesitate to contact us with your questions and curiosities concerning those properties of interest and Martha's Vineyard real estate topics in general.
If, however, a purchase of Island property is not in your future right now, this is a terrific time to book your summer vacation rental for 2016. Our strong Island-wide inventory features homes that accommodate most every need. Our experienced rental agents are readily available to assist you in finding the perfect vacation home. Please contact us to assist you with creating your dream vacation.
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