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.