Second Quarter Sales Commentary
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.
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.