2018 Mid-Year Market Report - low inventory means sellers market

Market News - Low inventory for the first half of 2018 meant it was a sellers market.

The island’s real estate market slowed slightly in the first half of 2018 with a 4% drop in the number of transactions (from 280 in the first half of 2017 to 269 in the first half of 2018) and a 2% decrease in the total dollar volume (from $304.7mm in the first half of 2017 to $299.6mm in the first half of 2018). However, the average sales price rose from $1.088mm in the first half of 2017 to $1.114mm in the first half of 2018 while the high-end market remained strong with 9 sales over $5mm in 2018 (versus 8 in 2017).   Note: these stats. exclude the $30mm sale of the Harbor View Hotel in January 2018 – with the Harbor View sale, total dollar volume increased 8% and there were 10 sales over $5mm.

Of the sales over $10mm in the first half of 2018, there was a $15mm Chilmark property with acreage, 7000 square foot house, guesthouse, pool and deeded beach, and a $10.8mm sale in Edgartown for 15 acres on Katama Bay with shared dock. In 2017 there were also two sales over $10mm in the first half of the year with one in Edgartown and one in Chilmark.

Most of the modest decrease in transactions comes from slower activity in Tisbury with a drop of 7 transactions from 53 transactions in the first half of 2018 versus 60 in the first half of 2017. Aquinnah was down 4 transactions for a total of 2 transactions in the first half of 2018 (a significant drop for this tiny market) and West Tisbury was down 4 transactions as well (to 28 transactions in the first half of 2018). Oak Bluffs held steady at 77 transactions. Edgartown and Chilmark were up 4 transactions and 1 transaction respectively (for a total of 88 transactions in Edgartown in the first half of 2018 and 22 transactions in Chilmark in the first half of 2018).

This mild stalling of the market may be due to lack of inventory. The lowest inventory of the year typically occurs in March and the low in 2017 was 379 properties while 2018 bottomed out at 337.

These low inventory levels continue to put pressure on prices as many segments of the market shift toward a Seller’s market, hence the rise in average sales price from the first half of 2017 versus the first half of 2018.

Click here to see property transactions that Tea Lane have participated in.

http://www.tealaneassociates.com/sold-properties