Monday, March 9, 2015
March 9, 2015
Spring is only 13 days away…at least that is what the calendar tells us. Snow has covered the island now for 41 days and all I can say is “I will really enjoy summer this year!” My calculation is that the island has experienced over 50 inches of snow this year which is about ½ of what other areas of the state received. Personally, I like snow and cold so you will get no complaining from me.
I apologize for not providing you with a market update in February as I was traveling for a couple of weeks and once back on island, I was consumed with playing “catch-up”.
The statistics for the first part of the year are “hopefully” a harbinger of things to come! There were 64 closings in the first 2 months of 2015 with an average price of $1.7M and a median price of $674K. The increase in prices was partly due to a $22M sale and $10M sale. Looking back to the first 2 months of 2014, there were 67 closings with an average price of #1.1M and a median price of $525k. So, the number of sales in 2015 is consistent compared to a year ago but prices are trending upwards.
The amount of snow across New England is not only playing havoc with town budgets and peoples patience, it is having a negative effect on the real estate market. This is evidenced with a decrease in the number of property showings, the number of properties currently for sale (300 currently listed; the height of the season we will see over 500 for sale) and the number of homes currently under contract (only 41). The 41 “under contract” properties have an average price of $1.2 M and a median price of $730K. Again, this supports an upward trend in sales prices.
My prediction is that once the snow melts and there is some sign of spring, our market will get very busy. Interest rates continue to stay at historic lows (at or below 4%) and “experts” predict that rates will remain stable throughout the year. Put all this together and the real estate market on MV looks to be good in 2015.
Please let me know any questions and thanks for your patience in what I do.