August Newsletter and Market Update

August 19, 2014

 

It hard to believe that we are past the halfway point of August 2014! This is the week of Illumination in Oak Bluffs and the AG Fair in West Tisbury.  It is also a reminder that I am 2 weeks late in getting my monthly market analysis out…my apology.

President Obama is visiting the island with his family so the island is “abuzz” with excitement and the intrigue of where he will be next.  Last evening I saw the “entourage” entering Featherstone for an R&B/Jazz show and in the afternoon I spied him golfing at Farm Neck. 

The island real estate market is continuing the good steady pace we discussed the past few months, but please do not take this as a significant increase in the market:

Month/Year                   July/2014           June/2014           July /2013         2014(YTD)         2013(YTD)

# Residential Sales               27                        23                         32                       202                      220

Average Price                 $768K                  $913K                   $915K                  $934K                    $889K

Median Price                    $575K                 $586K                  $597K                   $575K                   $571K

Avg.  Days on Market       139                        259                      211                       231                        286

The statistics show a slight increase in the (month over month) number of sales, a decrease in the average price and a slight decrease in the median price.  Days on market are down significantly in July.  The July sales (numbers and values) are also slightly down compared to one year ago (July 2013).   The YTD numbers (a better indicator of the health of the market) are all indicating a slight increase in the market values but the numbers of sales are still down about 8%!   And “average days on market” is significantly down.

I am a bit concerned about the current inventory. There are currently 517 residential properties on the market with an average asking price just under $2M and a median price of just over $1.1M.  I find this a bit curious since the average selling price (YTD) is $934K and the median selling price (YTD) is $575K.  Many buyers I speak with are confused with the pricing of the current inventory and confused buyers have trouble making decisions.  Current pricing trends may cause a slowdown in the market.

As we approach the end of summer, property showings may slow a bit as people get busy with school and activities at home.  Be patient though, as September and October bring back some “real” buyers.

Please let me know any questions or thoughts you might have.

Thank you for your trust and patience in what I do.  All the best.

 

Doug Reece                                                                                                         

Certified Residential Specialist®,

Certified Luxury Home Marketing Specialist®