LANDMARKS REAL ESTATE
First Quarter 2014 Sales Commentary
Sean D. Federowicz, M.B.A.
Broker, Owner, Realtor
Winter's long hold appears to have released itself, and spring may finally have arrived, thankfully. The interminably long winter certainly left its imprint on the Island real estate market. And now the customary spring stirrings are sounding more like sudden and loud rustlings. There is an underlying sense on-Island that any expectation of a leisurely unfolding Spring Market will emulate more of a "sprint" this year due to the impacts of the long winter. So, with the first quarter of 2014 having expired, here is our latest commentary concerning the real estate transaction activity thus far on Martha's Vineyard.
Each of the early seasons's three-day holiday weekends were affected by poor weather that deterred the pursuit of any meangingful real estate activities. However, with the warmth of spring now quickly approaching coupled with the gear-up to the customary spring real estate market, there is anticipation that we will make up for lost time. We anticipate very active weekends working with prospective buyers who intend to acquire Island properties before summer arrives.
Last spring, we practitioners felt that 2013 was "the year" for a substantive improvement in transaction volume to take hold. And that certainly materialized with 408 single family home transactions being consummated. The confluence in pent-up demand, high levels of inventory, attractive home prices, and advantageous lending rates all came together nicely last year.
Many of these same variables still exist now in early 2014. Attractive lending rates are still available, and inventory will begin to increase from off-season lows with the arrival of warmer weather and prospective buyers with continued confidence toward second home markets.
According to the National Association of Realtors projected forecast for the country's real estate market in 2014, the Cape & Islands will not experience the significant price increases that were seen last year, but rather will find a modest rate increase of approximatley 4-6% in prices regionally.
Interest in Martha's Vineyard real estate has remained constant as was demonstrated by the on-line search traffic during the first quarter. And the Island still holds cachet 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 2014:
Inventory is beginning to creep higher from the holiday lows of approximatley 525 total units to 570 as of this writing.
Thus far in 2014, a total of 88 residential properties were sold among the Island towns: Edgartown-29, Oak Bluffs-26, Vineyard Haven-12, West Tisbury-9, Chilmark-6, and Aquinnah-0.
Median prices on-Island have decreased 13% from $605,000 to $527,500 compared to the same period in 2013. Conversely, average prices have increased 25% from $878,978 to $1,098,691 for the same period.
On average, residential property sales have captured 93% of their asking prices and garnered nearly 105% of their respective tax assessments. The strength of this correlation remains subject to factors such as condition, amenity, scarcity and uniqueness of the subject properties sold.
As an independently owned franchise that is associated with a national brand, we are often introduced to proprietary market analysis. We've thus learned that, without question, the northeast as a region has fared better than many areas of the country. And resort-vacation-destination type 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, 2014 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.
Regardless of which "camp" you may identify 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 https://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???