Happy summer from Martha’s Vineyard, it finally arrived! It has been a busy start to the summer season, and in reality a strong carry-forward from the hectic early part of the year. So, without much ado, please allow us to share our mid-year market commentary concerning the sales activity on-Island thus far.
The continued positive sentiment toward Martha’s Vineyard real estate has been demonstrated with the consistent number of transactions being consummated. The search activity performed by prospective buyers has seen a vast improvement over that of last year. And both median and average residential sales prices have significantly increased year over year despite there still being an above average level of inventory on a historic basis.
Transaction volume is increasing too, which is customary given the seasonality influence. And while prices have increased, some segments are proving to be “hotter” than others. Overall improved buyer sentiment and a greater sense of urgency to engage in the acquisition of property is readily present; therefore, competition has increased among prospective buyers. It is still the better priced, better conditioned, and more idyllic properties that are generating the most interest and now often garner multiple offers. But this dynamic has begun to spread across all market segments.
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 is becoming less available to those who wait given the volume of inventory recently consumed within various market segments, and the influence that the Federal Reserve has begun to place upon mortgage lenders through their policy actions.
Here are the more meaningful statistics to consider from the activity realized during the Second Quarter of 2017:
- Inventory has increased with the accompanying warmer temps from the early spring total of 517 units to the current 543. The total value of listed real estate on-Island now equates to $1.208B.
- Thus far in 2017, a total of 203 residential properties were sold among the Island towns, which is 8.5% more than last years’ sales for the period: Edgartown-57, Oak Bluffs-59, Vineyard Haven-38, West Tisbury-29, Chilmark-16, and Aquinnah-3
(Data Courtsey of LINK)
Year-to-date median residential sale prices on-Island have increased 10.2% from $672,000 to $740,000, while average residential sale prices increased by almost 22% from $1,015,000 to $1,232,000 as compared to the same period in 2016.
Year-to-date residential sales in the aggregate have captured 96% of their final asking prices, and garnered approximately 125% 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. Resort-vacation-destination markets like Martha’s Vineyard have continued to enjoy consistent attention and acquisition; however they too are now encountering inventory driven issues much like the primary markets have endured. However the decision drivers differ when electing to acquire a second, vacation type home as it is often a discretionary purchase.
Nonetheless, there are similar economic, emotional, logistic, and utilitarian variables that are employed in the undertaking of such a venture. And our agents are skilled and savvy in addressing them. Please feel free to contact us with your questions and curiosities concerning properties of interest, or Martha’s Vineyard real estate in general.
Lastly, if you are still seeking a summer vacation on-island, please be in touch with us for assistance. There is still some availability and our rental agents are here to help you find a last minute getaway!