Real Estate Market Reports

2017 Q1 Martha's Vineyard Real Estate Market Summary

Happy Spring to one and all.  Now that the First Quarter of 2017 has closed, let’s examine the real estate activity on-Island thus far and allow us to offer our comments for your consideration.

Aside from a couple of ‘normal’ snow events, the winter was relatively mild, but also has held on for longer than most would’ve liked.  However, since the holidays, our weekends have been bustling with early season real estate activities.  This confirms for us that the positive sentiment realized from the fall toward vacation/second home acquisition still abounds.  And given the calendar, with the arrival of the traditional spring market, we anticipate having more busy weekends in the field with prospective buyers pursuing acquisition activities toward finding an Island property before summer.

Continuing with the strong market dynamics of last year, many of the same variables we espoused during the past three seasons continue to exist here in early 2017, but perhaps with a greater sense of urgency or significance.  For several years now, the Vineyard market has meandered along in a “not too hot, not too cold” type behavior regarding the annual volume and realized prices of sold properties.  However, while attractive mortgage options are still available, they are becoming more sensitive to interest rate increases. And as the inventory increases from the off-season lows, the amount of new units may be tapered in number given the voluminous turnover we’ve already experienced during the past several years from this finite market of properties.

The median price on-Island has established the “sweet spot” for sales transactions during the first quarter.  By far, this is the most active segment of the market and therefore has depleted much of the available inventory.  And while the higher price segments offer many options within each of the Island towns, pricing is critical even in an active market.  “Blue-sky” pricing of a decade ago is not proving to be as effective a strategy in attracting buyers given our current market condition.  (Quarterly statistics courtesy of LINK)

The National Association of Realtors (NAR) reported that existing nationwide sales in 2016 were the best in a decade but that current housing inventory is the lowest in the country since 1999.  Their chief economist, Lawrence Yun, suggested that the expanding pool of buyers nationwide amidst a dwindling number of available properties has led to a tighter supply and therefore increased sale prices, but buyers are demonstrating caution in chasing properties for fear of over-paying, a lingering stigma from 2005.  With the spring market now upon us, it remains to be seen if the Vineyard will feel similar correlating effects after the strong transaction volume we conveyed in 2016.  But for prospective buyers of the island, it is important to recognize that the Vineyard has begun to “normalize” and emulate many of these same competing characteristics found off-island.  With high interest and increased demand for Island real estate but lower levels of available inventory to consume, buyers should expect to see higher market prices this year.

Here are the more meaningful statistics to consider from the activity realized during the First Quarter of 2017:

Current inventory for the first time in years is below winter holiday levels, which is often the most quite period of the year. Last year at this time, there were 475 total listed units.  As of this writing, there are 451.  As aforementioned, there likely will be an influx of listings forthcoming to participate in the “spring market”, once the warmer weather firmly arrives.  But there is a marked change in the complexion, volume, and pricing of properties found within the segments of our marketplace.  Therefore, prospective buyers will need to remain vigilant this spring and keep their eyes peeled for new supply coming to market, and be equally prepared to act promptly.

A total of 89 residential properties were sold among the Island towns within the First Quarter this year, which is 10% more than were sold a year ago. Specifically, home sales were found as follows:  Edgartown-19, Oak Bluffs-30, Vineyard Haven-16, West Tisbury-14, Chilmark-9, and Aquinnah-1.  

Median sales prices on-Island for Q1 increased 11% from $683,729 to $759,000 compared to the same period in 2016, while average prices increased by 14% from $1.133M to $1.292M during the same period.  

On average, residential property sales thus far have captured 96% of their final asking prices and garnered 126% of their respective tax assessments.  However, the strength of this correlation remains highly subject to factors such as condition, amenity, scarcity and uniqueness of the subject properties sold.

As an independent franchise that is associated with a national brand, we are often introduced to proprietary market analysis and industry trends.  We’ve thus learned that resort-vacation-destination markets like Martha’s Vineyard have continued to enjoy consistent attention and acquisition, but also significant heightened competition for these desirable properties.  So for those who have vested themselves in the search for Island real estate, 2017 may again afford the opportunity to make the commitment toward acquiring an Island property. But preparation and timing are becoming important variables.   And for current home owners to consider, because the better conditioned and more realistically priced inventory has been consumed in 2016, this year could prove to be an opportune time to list and successfully sell your Island property given the steady demand.  Please contact us to discuss performing a market analysis and Broker Opinion of Value for your property.  With over 30 years of market experience, we are able to counsel our clients well.

Martha's Vineyard Real Estate 2016 Year-End Commentary

COLDWELL BANKER LANDMARKS
PREVIEWS INTERNATIONAL

2016 Year-end Market Commentary

By Sean D. Federowicz, M.B.A.
Broker, Owner, Realtor

The significant cadre of prospective buyers who had been biding their time since the market height in 2006, having endured the “great recession” and the subsequent market recovery of 2015 on-Island, have become more aware of the nuances associated with Island ownership. Many of these parties re-entered the market during the past two seasons to make their purchases. Yet seemingly, there is a balance of prospective buyers who are still on the sidelines, waiting for the “perfect property” or “perfect time” to commit.

The irony here is that these very same folks may risk missing out (again) on an attractive buying opportunity as the Vineyard market continues to demonstrate improved strength.  With higher lending rates now expected, and if the weather cooperates, we anticipate the New Year getting off to an early and strong start before the customary, albeit competitive “spring market” arrives. Here are some facts, observations, and opinions that may help you formulate your own point of view regarding the state of Martha’s Vineyard real estate.

Here are some facts, observations, and opinions that may help you formulate your own point of view regarding the state of Martha’s Vineyard real estate.

  • Nationwide sentiment toward real estate has substantively improved, especially among second home seekers in vacation/destination markets like Martha’s Vineyard, as investments made within these segments are for both lifestyle and financial purposes.
  • Reinforcing the good feeling is the continued and relatively favorable interest rate climate. However, the near-term trajectory of lending rates appears to be heading upward with the recent policy actions from the Federal Reserve Bank.
  • The S&P, Core-Logic, Case Shiller Indices expect home prices to improve another 5.2% in 2017, likely as a result of existing tight inventory conditions.  But the sentiment stemming from this primary market dynamic will likely affect Island real estate pricing too, even if nominally.
  • The 4th Quarter realized a significant volume of residential sales on-Island (155) exceeding Q1 (88), Q2 (99) and Q3 (114).  Our “Fall Market” has become stronger than the customary “Spring Market”.  Note that the total number of properties for sale has decreased significantly from the seasonal high of approximately 637 in late August to 475 at this writing.  Arguably, the Vineyard market still has excess inventory.  But with the supply of “quality” units falling, prices can more readily increase. This could also be a cue for potential sellers to enter the market with new listings come spring, if not sooner.  Please contact us to discuss the salability of your property.
  • In 2016, residential sales on-Island were again realized from all price segments totaling 456 units versus the 462 transacted in 2015.  However, comparative to 2015, the high-end segment participated to a lesser extent this year. As a result, price divergence has now developed between median and average sales prices, whereby the former increased by 11.2% from $650,000 to $723,000 but the later decreased 8.7% from $1,259,000 to $1,149,000.
  • Sales prices on-Island continue to capture approximately 95% of their asking price, but garnered 129.40% of their respective tax assessment.  This break in correlation between assessed value and sales price has continued from the end of 2012 and confirms that a return to “normalcy” is well underway on Martha’s Vineyard.
  • For the year, Island towns conveyed the following number of residential properties; Edgartown-141, Oak Bluffs-118, Vineyard Haven-95, West Tisbury-55, Chilmark-39, and Aquinnah-8.
  • The Island is a finite commodity having both geographic and economic barriers of entry that promote various price supports not typically found in many primary real estate markets. Although scarcity, location, condition and amenities continue to be key drivers toward pricing.
  • As desirable inventory is pared down, prices will continue to adjust upward as a function of supply and demand.  It is not surprising that with the improved market climate, the better priced, better conditioned properties are going under contract more quickly than their respective competition.
  • Our successful 2016 clients, buyers and sellers alike, have these best practices in common: Identify your wants and needs, learn the market, develop reasonable expectations, perform your due diligence, and “be prepared to act”.  This micro-market has returned to a more competitive and urgent dynamic.

It is our expectation for 2017, that Martha’s Vineyard will catch up to the competitive trends found within many primary markets. We expect the increase in search activity to continue, especially from those who have long watched from the sidelines and may now fear “missing out” on capturing their dream of Island ownership or having to endure higher finance costs to do so.

As the economy continues to stabilize, the absorption rate for Island property will also continue to increase, resulting in sales price increases as supply decreases.  Lastly, with mortgage interest rates now rising, this factor may also provide some incentive for prospective buyers to act sooner rather than later.  This will add to the increased competitive dynamic for real estate acquisition on-Island.

Certainly anything can happen during the year, of course, and the Island’s resilience as a discretionary market of desire will be tested.  However, for those individuals who perform their due diligence, work with an experienced Realtor, and are ready to take action, it still remains a great time to be a Buyer of Martha’s Vineyard real estate!

If a purchase of an Island property is not in your future right now, there is still time to book your 2017 summer vacation rental.  Our inventory features homes that accommodate most every need and represent every corner of the Island.  But availability for best properties and weeks is waning.

As always, do not hesitate to contact us with your questions concerning properties of interest, and Martha’s Vineyard real estate concerns in general.

Martha's Vineyard Third Quarter Real Estate Sales Commentary

COLDWELL BANKER LANDMARKS
PREVIEWS INTERNATIONAL

Third Quarter Sales Commentary
By
Sean D. Federowicz, M.B.A.
Broker, Owner, Realtor

It is hard to believe that another season is now in the books, and 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 plenty of enjoyment to its patrons. The ferries and beaches were non-stop full, and the real estate market on-Island continued a positive, albeit more modest trajectory from 2015. The typical springtime real estate search activities began haphazardly but gained steam as we migrated into summer. And we have been been actively in the field with clients ever since with the expectation that a productive fall market is unfolding before us.

Despite the continued geo-political and macro-economic issues in the world today, prudent investment decisions and lifestyle choices remain overriding considerations among buyers of Martha’s Vineyard real estate.   With relative value, choice, and compelling lending rates still available, we are anticipating continued search and acquisition activity through year-end before the holidays and quieter winter months arrive.

The confluence of events that has enabled Martha’s Vineyard to retain market traction this season still has room to run before emulating the conditions found among many primary markets, which is arguably a supply driven issue focused upon the limited availability of quality properties for sale. That is not the condition on-Island.  However, the general local market dynamic and sentiment has notably improved with more interest and greater activity from buyers and sellers alike.

After closing a robust and markedly intense 2015 season, and given the continued degree of activity that 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 other second home market trends.

Please consider the following;

  • Year to date 301 residential properties have sold on Martha’s Vineyard, which is down 5.3% from the 318 sold for the same period in 2015.
  • Q3 alone conveyed 106 residential properties, down modestly by 15.0% from the 124 sold in 2015 for the same period.
  • The number of properties for sale however, has remained relatively constant for nearly seven years.  There are currently 637 total active listings representing $1.441B of listed real estate on-Island.
  • At the Quarter’s close, year-over-year median home sale prices increased 10.0% from $690,500 to $756,125, but average home sales prices decreased by 14.0% from $1,337,104 to $1,156,539 for the period.  These metrics speak to the change in price segment participation this season from last year, reflecting the properties sold.
  • On average, YTD home sales on-Island have transacted at approximately 95% of their asking price while realizing 125% of their tax assessment.  This correlation suggests that property sale prices exceeding the respective tax assessment have continued to trend more broadly throughout our micro-market, but still remain subject to the attributes of condition, location, utility, scarcity and uniqueness.

Acquiring real estate in this largely second-home market is often a discretionary decision.  However, given the consistently high level of inventory coupled with continued low interest rates, this arguably remains 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 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 an opportune time to book your summer vacation rental for 2017.  Our Island-wide inventory features homes that accommodate most every need, but competition for the best properties and available weeks has markedly increased.  Our experienced rental agents are readily available to assist you in finding the perfect vacation home.  Please do not delay, contact us now to assist you with creating your dream vacation!

 

Second Quarter Sales Commentary 2016 - Martha's Vineyard Real Estate

Happy summer from Martha’s Vineyard to one and all!  It has been a busy start to the summer season, especially since Mother Nature enabled an earlier start to the spring market with more favorable weather as compared to last year.

So, with yet another summer buying season now at hand, please allow us to share some market commentary concerning the sales activity on-Island thus far.  The continuance of positive and improving sentiment toward Island real estate has been demonstrated with a consistent number of transactions being consummated.  The search activity performed by prospective buyers has been consistent with these common activities comparative to last year. And while the Island continues to carry an above average level of inventory on a historic basis, it is still the better priced, better conditioned, ideally located and more unique properties that are generating interest and garnering bids on-Island.

Transaction volume is increasing too, which is customary given the seasonality influence, and the composition of our inventory is evolving quickly with new listings materializing in advance of the late summer audience.  And while prices have moderated a touch, some segments are proving to be “hotter” than others.  Yet wholesale participation from each market segment is at a less frenetic pace than last season. The low interest rate climate offered by lenders still remains favorable and available to most prospective buyers.  And buyer sentiment coupled with their sense of urgency to engage in the acquisition of property is still present; therefore competition continues to exist among prospective buyers for coveted listings. All told, Martha’s Vineyard still offers opportunity and greater relative value in comparison to many other like-kind markets, but choice of inventory and attractive financing options may become less available in the not too distant future to those who wait.

Here are the more meaningful statistics to consider through Second Quarter 2016:

Inventory has increased with the accompanying warmer temps from the early spring total of 517 units to the current 599.  The total value of listed real estate on-Island now equates to $1.340B.

Thus far in 2016, a total of 187 residential properties were sold among the Island towns, which is on par with last years’ sales for the period:  Edgartown-51, Oak Bluffs-49, Vineyard Haven-40, West Tisbury-24, Chilmark-17, and Aquinnah-6.

Sales consummated Island-wide for the Second Quarter were;

Year-to-date median sale prices on-Island have increased 13.2% from $593,000 to $672,000, while average sale prices decreased by almost 21% from $1,283,000 to $1,015,000 as compared to the same period in 2015.

Year-to-date, sales in the aggregate have captured 95% of their final asking prices, and garnered approximately 136% of their respective tax assessments.  The strength of this correlation remains subject to factors such as competition, condition, amenity, and uniqueness of the subject properties sold, yet the relationship has been maintained over the past several years with relative consistency.  

As an independent franchise that is associated with a national brand, we are often introduced to proprietary market analysis.  We’ve learned that, the northeast as a region continues to fare better than many areas of the country.  And resort-vacation-destination markets like Martha’s Vineyard have continued to enjoy consistent attention and acquisition.

Please visit www.mvlandmarks.com regularly to keep abreast of all Island properties for sale.  And as always, please do not hesitate to contact us with your questions and curiosities concerning properties of interest, or Martha’s Vineyard real estate in general.

2016 First Quarter Sales Commentary

Oh how El Nino has been a blessing to us on the coast of New England this winter. A year ago at this time, there were still piles of snow on most street corners among the Island villages and the temperatures had not yet touched 50 degrees!  However, despite the brief visit of some snow recently, not only are the daffodils sprouting, but trees and plants are showing buds with the generally mild temperatures.

Martha's Vineyard Home in the Spring

So with the early warmth of the season upon us, the customary spring stirrings for real estate activity are afoot too.  And since the first quarter of 2016 has closed, let's examine the real estate activity on-Island thus far and allow us to offer our comments for your consideration.

As noted, the off-season has been a welcome respite from the harsh winter of only a year ago.  Aside from a couple of 'normal' snow events, the winter was relatively mild. And with summer now firmly on the horizon, coupled with the carry forward of positive sentiment toward vacation home acquisition from the fall, we anticipate some very busy weekends in the field with prospective buyers pursuing the acquisition activities toward finding an Island property before the arrival of our summer "high-season".

Continuing on with the strong market dynamics of last year, many of the same variables we espoused during the past two seasons continue to exist here in early 2016.  Specifically, attractive lending rates are still available; inventory levels will begin to increase from the off-season lows coupled with pent-up demand from prospective buyers holding improved confidence toward second-home markets.  It is these factors that are expected to again drive this season's activity in part, or whole.

Barron's published an article on March 28th discussing the Top 20 Second-Home Resorts, and Martha's Vineyard placed 6th, nicely squeezed in between Kiawah Island, SC and Vail, CO.  Other regional competition included the Hamptons, NY placing 4th but interestingly, no mention of Nantucket.   As we noted in our Year in Review edition, there were 444 residential properties sold on-Island with the vast majority being acquired for seasonal, vacation use.

The National Association of Realtors (NAR) noted that following the banner year nation enjoyed for vacation home purchases made in 2014, median sales prices for purchases in 2015 jumped another 28%.  The chief economist for NAR, Lawrence Yun, suggested that the expanding pool of buyers nationwide amidst a dwindling number of available properties led to a tighter supply and therefore increased sale prices.  With the spring market now upon us, it remains to be seen if the Vineyard will feel similar effects from lower numbers of quality inventory during the course of this year after the strong transaction volume we conveyed in 2015.

That being said, here are the more meaningful statistics to consider from the activity realized during the First Quarter of 2016 (Data Courtesy of LINK):

 

  • Inventory has begun to increase within each price segment from the holiday lows of approximately 460 total units to 517 as of this writing.
  • A total of 82 residential properties were sold among the Island towns within the First Quarter this year, which were only 10 fewer than were sold in the First Quarter of 2015. Specifically, home sales were found as follows:  Edgartown-25, Oak Bluffs-21, Vineyard Haven-14, West Tisbury-11, Chilmark-7, and Aquinnah-4.
  • Interestingly, median sales prices on-Island for Q1 decreased approximately 2% from $705,000 to $691,865 compared to the same period in 2015, while average prices have also decreased by 30% from $1,621,663 to $1,132,394 during the same period.  Please bear in mind that this comparison is only relative to the same period Q1 2016 to Q1 2015 and we do not expect this general trend to continue throughout the current year.
  • On average, residential property sales thus far have captured nearly 95% of their final asking prices and garnered 158% of their respective tax assessments.  However, the strength of this correlation remains highly subject to factors such as condition, amenity, scarcity and uniqueness of the subject properties sold.

As an independent franchise that is associated with a national brand, we are often introduced to proprietary market analysis and industry trends.  We've thus learned that resort-vacation-destination markets like Martha's Vineyard have continued to enjoy consistent attention and acquisition.  So for those who have vested themselves in the search for Island real estate, 2016 may again prove to be an idyllic year to make the commitment toward acquiring an Island property.

And for home owners to consider, because the better conditioned and more realistically priced inventory has been consumed in 2015, this season could prove to be an opportune time to offer and successfully convey Island property for sale.  Please contact us to discuss performing a market analysis and Broker Price Opinion of value for your property.  With 30 years of market experience, we are able to counsel our clients well.

As inventory begins to appear in advance of the "spring market", please visit www.mvlandmarks.com regularly to keep abreast of all Island properties for sale.  And as always, please do not hesitate to contact us with your questions and curiosities concerning properties of interest or Martha's Vineyard real estate in general.

Summer is coming to the Vineyard, might YOU be coming to your Island home???

 

Real Estate Market Summary: 2015 Year In Review

COLDWELL BANKER LANDMARKS
PREVIEWS INTERNATIONAL
2015 Year in Review

By
Sean D. Federowicz, M.B.A.
Owner, Broker, Realtor

Greetings and a happy belated New Year to one and all!  As has become customary, we offer you our annual installment of “The Year in Review” regarding Martha’s Vineyard Real Estate.

It appears that 2015 was the watershed year for the real estate recovery to finally take hold on-Island.  It has been a long six years of meandering since the depths of the real estate recession in 2009.  However, a confluence of events in 2015 contributed to a very strong year for sales.

Despite the non-existent “spring market” due to the interminable amount of snow the Island received and the late arrival of warm weather, Mother Nature did provide us with another terrific summer.  Let’s hope for a milder weather pattern in early 2016 to facilitate the continued real estate activities in the New Year!

A significant cadre of prospective buyers have been biding their time since 2006 -- the height of real estate sales on Martha’s Vineyard.  These folks have kept their “powder dry” through the recession, have become more aware of the nuances associated with Island ownership, and stayed informed of inventory changes and sales trends.  Many parties re-entered the market this past year and finally made their purchases. The balance of these prospective buyers is still on the sidelines, waiting for the “perfect property” or “perfect time” to commit.

The irony is that these very same folks may risk missing out (again) on a terrific buying opportunity as the Vineyard market continues to demonstrate improved strength.  If the weather cooperates, we anticipate the new year getting off to an early and strong start before the customary “spring market” and the arrival of warmer months.

Here are some facts, observations, and opinions that may help you formulate your own point of view regarding the state of Martha’s Vineyard real estate.

  • Nationwide sentiment toward real estate has improved, especially among second home seekers in vacation/destination markets like Martha’s Vineyard, as investments made within these segments are for both lifestyle and financial purposes.
  • Reinforcing the good feeling is the continued relative low interest rate climate. However, the near-term trajectory of lending rates appears to be heading upward with the recent policy actions from the Federal Reserve Bank.
  • The 4th Quarter realized a significant volume of residential sales on-Island (141) exceeding Q1 (86), Q2 (89) and Q3 (128).  Our “Fall Market” has become stronger than the customary “Spring Market”.  Note that the total number of properties for sale has decreased significantly from the seasonal high of approximately 650 in August to 502 at this writing.  Arguably, the Vineyard market still has excess inventory.  But with the supply of “quality” units falling, prices can more readily increase. This could also be a cue for potential sellers to enter the market with new listings in spring, if not sooner.  Please contact us to discuss the salability of your own property.

  • In 2015, total residential sales increased by 10.1% closing the year at 444 units sold versus the 403 transacted in 2014.  Median home sale prices on-Island increased by 8.3% from $600,000 to $650,000. Average home prices jumped 23.5% from $1,016,000 to $1,255,000.
  • Notably, residential sales on-Island continued to be realized across all price segments, inclusive of the high-value niche.  Sales prices averaged approximately 95% of their asking price, but nearly 124% of their tax assessment.  This break in correlation between assessed value and sales price has continued since the end of 2012.  It confirms that a return to “normalcy” is well underway on Martha’s Vineyard.
  • For the year, Island towns transacted the following number of residential properties; Edgartown-172, Oak Bluffs-107, Vineyard Haven-85, West Tisbury-41, Chilmark-29, and Aquinnah-10.
  • The Island is a finite commodity having both geographic and economic barriers of entry that promote various price supports not typically found in many primary real estate markets.
  • As desirable inventory is pared down, prices will continue to adjust upward as a function of supply and demand.  It is not surprising that the better priced, better conditioned properties are continuing to go under contract more quickly than their respective competition.
  • Our successful 2015 clients, buyers and sellers alike, have these best practices in common: Identify your wants and needs, learn the market, develop reasonable expectations, perform your due diligence, and “be prepared to act”.  This micro-market has returned to a more competitive and urgent dynamic.

It is our expectation that in 2016, Martha’s Vineyard will catch up to the robust trends found within many primary markets. We expect the increase in search activity to continue, especially from those who have long watched from the sidelines and may now fear “missing out” on capturing their dream of Island ownership. 

As the economy continues to stabilize, the absorption rate for Island property will also continue to increase, resulting in sales price increases as supply decreases.  Lastly, with mortgage interest rates now rising, this factor may also provide some incentive for prospective buyers to act sooner rather than later.  This will add to the increased competitive dynamic for real estate acquisition.

Certainly anything can happen during the year, of course, and the Island’s resilience as a discretionary market of desire will be tested.  However, for those individuals who perform their due diligence, work with an experienced Realtor, and are ready to take action, it still remains a great time to be a Buyer of Martha’s Vineyard real estate!

If a purchase of an Island property is not in your future right now, there is still time to book your 2016 summer vacation rental.  Our inventory continues to grow featuring homes that accommodate most every need and represent every corner of the Island.  But availability for best properties and weeks is waning.  Please contact us to assist you in creating your dream vacation.

As always, do not hesitate to contact us with your questions concerning properties of interest, and Martha’s Vineyard real estate concerns in general.

 

Summer is coming to the Vineyard, might YOU be coming to your Island home???

Q3 2015 Martha's Vineyard Real Estate Market Summary

COLDWELL BANKER LANDMARKS
PREVIEWS INTERNATIONAL
Third Quarter Sales Commentary
By
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.

Martha's Vineyard Q3 2015 Property SalesDespite 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.

Martha's Vineyard Property Selling Prices

View the full Martha's Vineyard Third Quarter 2015 Sales Summary from LINK here


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.

COLDWELL BANKER LANDMARKS is now on FACEBOOK.  Please like us!
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Q2 2015 Martha's Vineyard Real Estate Market Summary

COLDWELL BANKER LANDMARKS
PREVIEWS INTERNATIONAL
Second Quarter Sales Commentary
By
Sean D. Federowicz, M.B.A.
 Broker, Owner, Realtor


Happy summer from Martha’s Vineyard!  Apologies for the delay in disseminating our normal and customary quarterly missive.  It has been a busy and chaotic start to the summer season, especially since the spring market was again and even more significantly truncated by Mother Nature this year.

However, with the summer buying season now at hand, please allow us to share some market commentary concerning the sales activity on-Island thus far.  The positive and improving sentiment toward Island real estate continues with a consistent number of transactions being consummated.  We are observing an increase in search activity by prospective buyers who are demonstrating even more intent and action this season comparative to last year.  Median and Average sales prices have improved year over year, and while we continue to carry an above average level of inventory, it is still the better priced, better conditioned, ideally located and more unique properties that continue to generate interest and garner bids on-Island.

Transaction volume is increasing too, and now that the weather has vastly improved since late spring, the composition of our inventory is evolving quickly with new listings materializing weekly.  Prices have now begun to increase within each market segment while the low interest rate mortgage climate still remains available.  Most noticeable this season is the improved consumer confidence toward discretionary purchases like investment, vacation-home acquisitions.  Buyer sentiment and their heightened sense of urgency to engage has notably increased too.  All told, Martha’s Vineyard still offers opportunity and relative value in comparison to many other like-kind markets, but choice of inventory and attractive financing options may become less available in the not too distant future to those who wait.

Here are the more meaningful statistics to consider through Second Quarter 2015:  
  • Inventory has jumped higher with the accompanying warmer temps from the early spring total of 509 units to the current 668.  The total value of listed real estate on-Island now equates to $1.261B.  
     
  • Thus far in 2015, a total of 186 residential properties were sold among the Island towns:  Edgartown-68, Oak Bluffs-46, Vineyard Haven-38, West Tisbury-14, Chilmark-14, and Aquinnah-6.
     
  • Year-to-date median sale prices on-Island have increased 3.3% from $578,000 to $597,000, with improved average sale prices increasing by some 33% from $965,000 to $1,287,000 as compared to the same period in 2014!
     
  • Year-to-date sales have captured 94% of their final asking prices and garnered almost 118% of their respective tax assessments.  The strength of this correlation remains subject to factors such as condition, amenity, and uniqueness of the subject properties sold.

View the full Martha's Vineyard Second Quarter 2015 Sales Summary from LINK here

As an independent franchise that is associated with a national brand, we are often introduced to proprietary market analysis.  We’ve learned that, the northeast as a region continues to fair better than many areas of the country.  And resort-vacation-destination markets like Martha’s Vineyard have continued to enjoy consistent attention and acquisition.

Please visit www.mvlandmarks.com regularly to keep abreast of all Island properties for sale.  And as always, please do not hesitate to contact us with your questions and curiosities concerning properties of interest, or Martha’s Vineyard real estate in general.

 

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Q1 2015 Martha's Vineyard Real Estate Market Summary

COLDWELL BANKER LANDMARKS
PREVIEWS INTERNATIONAL

First Quarter Sales Commentary

By Sean D. Federowicz, M.B.A.
Broker, Owner, Realtor

Another long winter's hold appears to have finally released itself, and spring may have just arrived, thankfully.  The interminably long and "white" winter certainly left its imprint on the Island and our real estate market.  But now, with the arriving warmth of the season, the customary spring stirrings are afoot and we practitioners on-Island again have an underlying sense that any expectation of a leisurely unfolding spring real estate market will emulate more of a "sprint" this year due to the delayed impacts of the long winter.  So with the first quarter of 2015 having closed, here is our latest commentary concerning the real estate transaction activity on-Island thus far.

As noted, after squeaking by the MLK holiday weekend in January with but a trace of snow, the subsequent weeks of "snow-mageddon" effectively terminated any meaningful real estate activities on Martha's Vineyard.  However, with the warmth of spring now quickly approaching there is anticipation that we will make up for the lost time.  Add in the recently announced likelihood of interest rates increases from the Federal Reserve and the vastly improved acquisition rate for second homes in 2014, we anticipate some very active prospective buyers who intend to acquire Island properties this year.

Martha's Vineyard Real Estate Sold Q1 2015According to the National Association of Realtors, vacation-second home sales tallied 1.13M units in 2014, up 57.4% over 2013, and "booming" to above their most recent peak level in 2006, the highest since 2003.  Forty percent of the vacation home buyers purchased in a beach area, with 15% of this market being consumed in the Northeast.  As noted in our Year in Review edition, there were 400 residential properties sold on-Island, with the vast majority being acquired for seasonal, vacation use.

A recently published article last week by RISMedia reported, "That house prices recorded annual gains, and expect them to rise in the future".  It cited recent releases authored by the Federal Housing Finance Authority, Standard & Poor's and Case-Shiller each indicating that their respective measure of national house prices rose by 4.5% on a seasonally adjusted basis as of January.  This is a 33 consecutive month year-over-year increase for their respective house price indices.  Such consistent primary market improvement and overall sentiment toward real estate in general, should trickle down to the discretionary, vacation home markets like Martha's Vineyard.

Average Selling Price Martha's Vineyard real estateContinuing on with the strengthening market dynamics of last year, many of the same variables we espoused during the 2014 season continue to exist here in early 2015.  Specifically, attractive lending rates are still available; inventory will begin to increase from the off-season lows coupled with pent-up demand from prospective buyers holding improved confidence toward second-home markets.  It is these factors that are expected to again drive this season's activity.

What has been demonstrated despite this winter's weather is interest toward Martha's Vineyard real estate has remained constant, as has been observed in the on-line search traffic received during the first quarter.  The Island still holds cache and is considered a desirable destination for family recreation and relaxation no matter the season!

Here are the more meaningful statistics to consider from First Quarter 2015:

Inventory has begun to creep higher from the holiday lows of approximately 470 total units to 509 as of this writing.

A total of 92 residential properties were sold among the Island towns within the first quarter. Specifically, single family home sales broke out as follows:  Edgartown-31, Oak Bluffs-16, Vineyard Haven-20, West Tisbury-8, Chilmark-6, and Aquinnah-4.

Median prices on-Island have increased 35% from $527,500 to $710,000 compared to the same period in 2014 while average prices have increased 49% from $1,098,691 to $1,634,000 for the same period.

On average, residential property sales have captured nearly 94% of their final asking prices and garnered 116% of their respective tax assessments.  However, the strength of this correlation remains subject to factors such as condition, amenity, scarcity and uniqueness of the subject properties sold.

View the full Martha's Vineyard First Quarter 2015 Sales Summary from LINK here

As an independent franchise that is associated with a national brand, we are often introduced to proprietary market analysis.  We've thus learned that, the northeast as a region has fared better than many areas of the country.  And resort-vacation-destination markets like Martha's Vineyard have continued to enjoy consistent attention and acquisition.  So for those who have vested themselves in the search for Island real estate, 2015 may equally prove to be an idyllic year to make the commitment to acquiring an Island property.

And for home owners to consider, because the better conditioned and more realistically priced inventory has been recently consumed, this season could prove to be an opportune time to offer and successfully convey Island property for sale.  Please contact us to discuss performing a market analysis and Broker price opinion of value for your property.

Regardless of which "camp" you assimilate with, our agency has witnessed the good, the bad and the ugly of the past several years. The benefit of this market experience enables us to counsel our clients well.

As inventory begins to appear in advance of the "spring market", please visit www.mvlandmarks.com regularly to keep abreast of all Island properties for sale.  And as always, please do not hesitate to contact us with your questions and curiosities concerning properties of interest or Martha's Vineyard real estate in general.

Summer is coming to the Vineyard, might YOU be coming to your Island home???

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2014 Martha's Vineyard Real Estate Year in Review

COLDWELL BANKER LANDMARKS

PREVIEWS INTERNATIONAL

2014 Year in Review

By

Sean D. Federowicz, M.B.A.

Owner, Broker, Realtor

 

Greetings and a happy belated New Year to one and all!  As has become customary, we offer you our annual installment of “The Year in Review” for Martha’s Vineyard Real Estate.

Last year proved to be a respectable continuation of 2013, reflecting the behavior of more “normal” market dynamics.  Despite the non-existent “spring market” due to the late arrival of warm weather, Mother Nature did her best to provide us with another terrific summer that allowed our patrons to fully enjoy the customary activities and events of the season.  Let’s hope for a milder weather pattern in early 2015!

Here are some facts, observations, and opinions that may help you formulate your own point of view on Martha’s Vineyard real estate.

  • Nationwide sentiment toward real estate has improved, especially among second home seekers in vacation/destination markets like Martha’s Vineyard, as investments made within these segments are for both lifestyle and financial purposes.
  • Reinforcing the good feelings has been the unexpected and continued low interest rate climate.
  • The 4th Quarter again realized a significant volume of residential sales on-Island (123) exceeding Q1 (88), Q2 (86) and continuing the strength from Q3 (103).  Our “Fall Market” has become a consistent second season for sales transactions, having in recent years become stronger than the customary “Spring Market”.  Of particular note is the total number of properties for sale which has decreased significantly from the seasonal high of approximately 750 in August to 554 at this writing.  Arguably, the Vineyard market still has excess inventory.  But with the supply of ‘quality’ units falling, prices can more readily increase, which could also be a cue for potential sellers to enter the market with new listings.  Please contact us to discuss the salability of your property.
  • Total single family home sales decreased modestly by 2% closing the year at 400 units versus the 408 transacted in 2013.  Median home sale prices on-Island have remained consistent but ended modestly down by 4% from $625,000 to $600,000 with average home prices essentially remaining flat at $1,014,000 from $1,016,000 in 2013. 
  • Notably, residential sales on-Island were found across all price segments, inclusive of the high-value niche, averaging an approximate 93% of their asking price, but capturing nearly 110% of their tax assessment.  This break in correlation between assessed value and sales price has continued since the end of 2012.  This new ratio substantively confirms that a market return to normalcy is finally underway on Martha’s Vineyard.
  • For the year, Island towns transacted the following number of single-family homes and condominiums; Edgartown-123, Oak Bluffs-132, Vineyard Haven-74, West Tisbury-34, Chilmark-25, and Aquinnah-12.
  • The Island is a finite commodity having both geographic and economic barriers of entry that promote price supports not typically found in many primary real estate markets.
  • As desirable inventory is pared down, prices will continue to adjust as a function of supply and demand.  It is not surprising that the better priced, better conditioned properties are continuing to go under contract more quickly than their respective competition.
  • The operative themes that many of our clients (both Buyer & Seller) have voiced after successfully completing transactions with us were: identify your wants and needs, learn the market, develop reasonable expectations, perform your due diligence, and be prepared to act.

It is our expectation that 2015 will continue to feature an improving real estate market on Martha’s Vineyard that mirrors many primary market trends. We expect the increase in search activity to continue, especially from those who have long watched from the side-lines.  As the economy further demonstrates improvement, the absorption rate for Island property will likely increase, with sales prices modestly increasing too as inventory is consumed.  Lastly, rising interest rate risk will also provide some incentive for prospective buyers to act more sooner than later.

Certainly anything can happen during the year, of course, and the Island’s resilience as a discretionary market of desire will be tested.  However, for those individuals who perform their due diligence, work with an experienced Realtor, and are ready to take action, it still remains a great time to be a Buyer of Martha’s Vineyard real estate!

If a purchase of Island property is not in your future right now, there is still time to book your 2015 summer vacation rental.  Our inventory continues to grow featuring homes that accommodate most every need and represent every corner of the Island.  Please contact us to assist you with creating your dream vacation.  Our experienced rental agents are readily available to assist you in finding the perfect vacation home!

Please visit www.mvlandmarks.com to view a comprehensive list of all available Island listings for sale or rent.  And as always, do not hesitate to contact us with your questions concerning properties of interest, and Martha’s Vineyard real estate issues in general. 

Summer is coming to the Vineyard, might YOU be coming to your Island home???