Summer Has Arrived

And just like that...summer has arrived on the island in time for the High School graduation ceremony.    The graduation takes place at the Tabernacle in Oak Bluffs on Sunday June 8^th and is preceded on Friday night with a presentation of scholarship money to many of the island “soon to be” college students.  I mention this since I am a proud father of a graduating senior and looking forward to a very busy weekend.  Now to the real estate matters at hand:

The real estate market is continuing at a good steady pace and here are the recent sales numbers:

Month/Year   May/2014     April/2014     May/2013       2014(YTD)      2013(YTD)

# Residential
       Sales               35                  26                    36                    149                  127

Average Price    $859K           $905K              $837K             $979K             $876K

Median Price     $628K           $705K              $556K              $580K            $556K

Avg. Days

on Market           249                327                   365                   238                 333

 

Again, the data statistics this month show that the slow continued growth is continuing, as expected.  The month over month number of sales are up 35% but are equal to the number of sales in May 2013(one year ago). The average price is down compared to last month but up from a year ago and the median price is the same, down from last month but up from a year ago. The average days on market are also down.  The YTD numbers are all indicating a slight increase in the market…and any increase is good! 

The month of June is, historically, a slow month when it comes  to people viewing property for sale.  June is a busy month for graduation, spring youth sports and working in the yard after a long winter and even longer spring.  I expect July and August will pick up substantially.   

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®
Accredited Buyers Agent®

In Like a Lion

 

April 7, 2014

 In like a lion…out like a lamb!  Not this year…March left the island just like she entered; like a lion.   However, entering this second week of April, spring has finally sprung.  Pinkletinks are singing along Lamberts Cove Rd, the spring trout stocking happened last Tuesday bringing many fisherman out and crocus flowers are blooming in most island towns. 

Let’s hope the island real estate market continues its busy first quarter of the year.

Here are the recent sales numbers:

Month/Year                           March/2014                 Feb/2014            March /2013           2014(YTD)             2013(YTD)

# Residential Sales                      21                                25                         35                         88                            63

Average Price                          $856K                        $1.126M              $1.01M                   $1,048M                 $871K

Median Price                           $499K                        $523K                  $640K                     $ 523K                    $600K

Avg.  Days on Market            262                              181                        397                         210                           322

The statistics this month, although not as positive as the first 2 months of 2014, are an indicator of the long cold winter we experienced.  All across the northeast, real estate sales reports are mimicking what we see here on the Vineyard. The number of sales and prices are down from the 2 previous months.  With spring arriving, I expect the market to pick up and we will see a good spring and summer selling season.  So make sure to give your property a good “spring cleaning”; inside and out.  With a strong inventory, buyers still have many choices and seem to wait for the properties that do not need work.

Speaking of inventory, there are presently 361 island residential properties on the market right now.  With the current rate of sales, this is about 10 months’ worth of inventory and the amount of inventory has a direct effect on the rate and price of sales. Locations that are experiencing an appreciation in property prices and number of sales have less than 3 months of inventory; locations with steady prices and sales have 3-8 months of inventory and locations with more than 8 months of inventory may experience a decrease in prices—according to national experts.  Personally I think the Martha’s Vineyard market will remain steady to slightly increasing due to the fact that we are a resort/second home market.
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®
Accredited Buyers Agent®

96% of Markets Better Off Than in 2010

96% of Markets Better Off Than in 2010

February 7, 2014

 

Happy Winter greetings from a very snowy Martha’s Vineyard.  For those of us who love winter (and I am one of those), this has been a great season!  Four to six more inches starting tonight!

You may remember from last month’s update that the 2013 sales data was a mirror image of 2012; the first time we have seen 2 years in a row with positive numbers since prior to 2005.  The January 2014 numbers continue this course of mostly positive information. 

Month/Year                          Jan/2014               Jan/2013               Jan/2012               Dec/2013

# Residential Sales                36                           16                              33                         39

Average Price                       $1.126M               $697K                    $967M                   $1.154M

Median Price                        $521K                    $602K                    $597K                    $ 750K

Avg.  Days on Market        207                        254                            228                        249

These numbers indicate a steady market (month over month) with a decline in days on market.  Please remember the January 2013 numbers are “skewed” since the fiscal cliff pushed may sales into 2012.  The strong finish in the 2013 market is supported by a strong start in 2014!

 In the words of Steve Harney, a real estate economist, “2012 was a year of recovery; 2013 was a year of stabilization; 2014 will be a year of growth”.  I believe this statement also directly resembles what we have seen on the island.  And…all indicators point to a strong year ahead in real estate sales.

 

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

 

Doug Reece                                                                                                         

Certified Residential Specialist®,

Certified Luxury Home Marketing Specialist®

Accredited Buyers Agent®

Holiday Greetings

November Newsletter

Will the Government Shut Down Affect the Real Estate Market?

September Newsletter

Great Option for Islanders!

 

 

Cape Cod Five Cents Municipal Mortgage Program:

 

-100% financing available to Municipal Employees of Barnstable, Dukes, Nantucket and Plymouth Counties

-Low 30 year fixed portfolio loan at 4.375% 0 points APR  4.294 (as of 7/31/13)

-Purchase of a primary residence -No first time home buyer requirement

-Income caps of $106,000 for Barnstable County and $119,000 for Dukes County

-Eligible borrowers- Police, Firefighter, School Teachers, employees of municipalities, counties, state and federal government, employed in areas of public safety, law enforcement education, healthcare and social services.

 

 

 

August 5, 2013

 

August 1^st brought us cooler temperatures, lower humidity levels and lots of summer visitors.  And with all these visitors, I have only one question, “Where are all the buyers?”

The real estate market on Martha’s Vineyard is not living up to my “hopes and predictions”.  The number of property viewings has dwindled to just a few each week. For example, last week I had 3 showings of the 28 homes I have for sale and none of these were above the $600,000 price range!  The only explanation I have for this comes from Dave Liniger, founder/owner of RE/MAX international, whom I had recently had an opportunity to “skype” with.   He says that the second/resort home market historically lags 12-18 months behind a “jump” in the primary home market and if you are following the national real estate market, areas like Las Vegas and Boston are seeing double digit growth and multiple offers on many homes.  So it appears as though we are in a “wait and see” scenario for Vineyard real estate.

There were 25 residential sales in June (avg. price $805K and median price $600K) compared to 35 sales in July 2013 (avg. price $938K and median price $540K) and compared to 26 sales in July 2012 (avg. price $827K and median price $562K).  So, the average price is DOWN (14%) from last month and DOWN (3%) from the same month a year ago. The median price is “UP” (11%) when comparing month over month and UP (7%) compared to July 2012.  The average “Days on Market” in July is down to 220 days, from 283 last month and from 274 in July 2012.  Again, as last month, the numbers mixed with the lone positive being the increase in median price.  As mentioned above, the lack of current buyer interest tells me that we are in a bit of a slump.

As with last month, let us look only at the prices and days on market when comparing YTD totals.   The YTD (2013) average price is $886K and median price is $570K compared to 2012 YTD sales with $931K avg. price and $535K median price.  These numbers show the average price declined (by 5%) while the median price is up (by 7%).  These numbers mimic what we saw last month.  Average days on market is 307 for YTD 2013, up 21% from YTD 2012.

Lastly, interest rates have ticked up a bit again (many 30 year rates are over 4.5%) which will help those buyers who are “sitting on the fence” jump into the market.  We have some new lenders offering incentives for the “Jumbo” loans (those over $417K so hopefully we can entice some buyers to take advantage of these programs.  On a similar note, one local lender is offering 100% financing to any Dukes County municipal employees (teachers, medical profession, social service providers, etc), so I hope to see some buyer take advantage of this opportunity.

Please let me know any questions you might have about how this prediction affects your property. As always, I appreciate your trust and patience in what I do.  All the best in real estate and otherwise.

 

Doug Reece                                                                            

Certified Residential Specialist®,

Certified Luxury Home Marketing Specialist®

Accredited Buyers Agent®

 

 

July Market Picking Up

 

July 3, 2013

Happy 4^th of July!  The island is hopping, the traffic is backed up and summer season is upon us...and I say “Bring it on!”

The real estate market has finally picked up after a lackluster June.  The number of property viewing has increased in the past few days and is hopefully a sign of good things to come.

There were 26 residential sales in May (avg. price $1.03M and median price $587K) compared to 32 sales in April 2013 (avg. price $882K and median price $576K) and compared to 29 sales in May 2012 (avg. price $1.08M and median price $672K).  So, the average price is UP(16%) from last month but down (5%) from the same month a year ago. The median price is “STEADY” when comparing month over month but down(13%) compared to June 2012.  Although these numbers are mixed, I like the direction we are going!  

As last month, let us look only at the prices and days on market when comparing YTD totals.   The YTD(2013) average price is $905K and  median price is $576K compared to 2012 YTD sales with $945K avg. price and $535K median price.  These numbers show the average price declined (by 4%) while the median price is up (by 8%).  These numbers are very positive since the “decline in average prices is the same as last month TYD totals and the median price continues to increase.  The only negative I see this month is the average “days on market” which is up to 327 days in 2013 compared to 251 days in 2012.

Lastly, interest rates have ticked up a bit again (many 30 year rates are over 4%) which will help those buyers who are “sitting on the fence” jump into the market and purchase.  This is supported by an increase in consumer confidence across the board.

Please let me know any questions you might have about how this prediction affects your property. As always, I appreciate your trust and patience in what I do.  All the best in real estate and otherwise.

 

Doug Reece                                                                            

Certified Residential Specialist®,

Certified Luxury Home Marketing Specialist®

Accredited Buyers Agent®

June 4, 2013

 

The island is gorgeous right now with all the “rhodies” and other flowering plants in bloom across the island.  Today is a fabulous blue sky day!

The real estate market has been a bit sluggish in the past few weeks.  This is a very typical scenario since mid-May brings college graduations, spring youth sports, high school proms and June welcomes high school graduations.  These activities keep many potential buyers focused on family activities and not in second/vacation home shopping.  I expect activity will increase before the end of June.

There were 32 residential sales in May (avg. price $882K and median price $576K) compared to 28 sales in April 2013 (avg. price $936K and median price $505K) and compared to 36 sales in May 2012 (avg. price $805K and median price $452K).  So, the average price is down a bit from last month but UP(10%) from the same month a year ago. The median price is WAY UP when comparing month over month and the same timeframe last year.  This is a good sign!  The YTD totals reflect the same: Although YTD 2013 shows a decrease in the number of sales, I am not going to use these numbers any longer.  As I mentioned before the “fiscal cliff” scare at the end of 2012 accelerated the number of sales in December 2012 and therefore “STOLE” a good number of sales that would have occurred in 2013.  Thusly let us look only at the prices and days on market when comparing YTD totals.   The YTD(2013) average price is $888K and  median price is $580K compared to 2012 YTD sales with $921K avg. price and $522K median price.  These numbers show the average price declined (by 4%) while the median price is up (by 11%).  These numbers are very positive since the “decline in average prices is less than last month YTD totals and the median price increase is consistent with that of last month.  The only negative I see this month is the average “days on market”  which is up to 342 days in 2013 compared to 260 days in 2012.

I know these statistics may make your “head spin” somewhat but the bottom line is for the first time since the beginning of the year I am seeing more positive than negative numbers in the Vineyard real estate market.  Here’s to a HEALTHY market the remainder of 2013.

Lastly, interest rates have ticked up a bit which will help those buyers who are “sitting on the fence” jump into the market and purchase.

Please let me know any questions you might have about how this prediction affects your property. As always, I appreciate your trust and patience in what I do.  All the best in real estate and otherwise.

 

Doug Reece                                                                            

Certified Residential Specialist®,
Certified Luxury Home Marketing Specialist®
Accredited Buyers Agent®

Statistics Show Rebound

 
August is here!  Unbelievable how fast the summer goes.  This is the month where tourists flock to the island in search of the perfect beach day, a wonderful meal at their favorite restaurant (Outermost Inn is mine) or just a chance to relax. 

Residential sales in July totaled 26 in number, a jump from 17 in July 2011 but down from 29 sales in June 2012.  The median sales price in July 2012 is $562,500 ($509,500 in July 2011 and $661,250 in June 2012) and the average sales price was $827,036 ($787,203 in July 2011 and $1,079,241 in June 2012).  The average days on market is 274 (241 days last July and 198 days in June 2012).  The July 2012 numbers indicate a stronger market in comparison to July of 2011 while the month to month numbers indicate a weaker market. 

Since a month to month comparison of statistics or even comparing same period this year to same period last year show a sharp difference, I think it best to take a YTD(year to date) look at the numbers.  For YTD 2011, there were 200 sales with an average price of $912,361 and a median price of $551,250.  In comparison, for the same period 2012, there were 265 sales with an average price of $890,599 and a median price of $505,000.  So even though the number of residential units sold are up YTD (a 33% increase), the average price is down 2% and the median price is down 8%.         

National and Massachusetts statistics are showing a rebound in real estate values and # of sales. Interest rates continue to be historically low.  I hope that these trends will help fuel our island market and buyers will be enticed to take advantage of the current market conditions.

Enjoy the rest of your summer and here’s hoping (fingers crossed) that a buyer for your property is in the near future.  As always, thank you for your trust and patience in what I do.

All the best...and with a smile.

Doug Reece

Doug's May Market Update!

 

For the first time in a couple of years we have been enjoying a wonderful spring season on the island.  Although a little dry, the spring weather brought colorful blooms that have been extraordinary.

There were 31 sales in April 2012 compared to 24 sales last month.  Seven of these reported 31 sales were foreclosure related (about 23%), down from 30% last month.  All indicators tell us we have about 12 -24 more months of a real estate market partially driven by distressed sellers.

The average sales price in April was $896,290 (up from $578,887 in March) shows there were a few more high end sales in April but the median price was $493,000 (down slightly from $530,000 in March).  The average days on market are up about 10% to 225 days.

There are currently 49 properties “under contract” (up 14% from last month) that indicate an increase in closings over the next 1-2 months. 

As stated in last month’s update, consumer confidence in the economy is increasing and that is evidenced by an increase in the number of showings.  Banks are starting to “loosen” the purse strings and mortgage requirements are not as stringent as in the recent past.  With interest rates still hovering around 4% or less, a strong summer selling season is hopeful.

Facts on the 3.8% Health Care Tax

Bay State home sales up again according to Boston Business Journal

Doug's March Market Update

I write this month from the RE/MAX international convention in Las Vegas Nevada. Although the weather is warm and sunny, I am spending my time in class and viewing new products in the “market place”. Since I am not a gambler, the casino is just something I walk through on my way to events.

There is good news being reported at the conference.

1. The GNP (gross national product) the indicator that tracts consumer spending is up over the past 18 months. Consumer’s spending of money means they have confidence in the economy.
2. Unemployment is down and thus more consumers are spending money and housing is on their radar.
3. The recent recession is over and tracking back 40 years to 1972, after each recession there has been a recovery in the real estate market (regarding number of units sold)

These are all positive indicators to support the reports that 2012 will an “up year” in regards to the number of properties sold.

Locally, the numbers for February support this prediction. In February 2012 there were 41 sales on island. The average sales price was $1,084,786, the median price was $520,000 and the average days on market are 267. The only “negative” here is that there were 12 bank foreclosures included in the 41 sales. I am not sure why there are so many bank related sales this month but we are definitely on the downside of the pinnacle of bank foreclosures numbers.

Interest rates continue to be historically low which should help fuel the market this year.

Doug's February Monthly Marketing Report

The numbers for January 2012 are stellar and hopefully a sign of good things for 2012. There were 37 residential sales in January with an average price of $1,023,999 and a median price of $748,900. The average days on market are 208. These are all positive signs. In January 2011, we saw 27 transactions with a median price of $650,000 and 218 days on market.

There have been 16 transactions so far in February with 9 days to go, so I suspect we will see about 25-27 total closings for this month.

There are presently 42 homes “under contract” across the island which tells me the number of closings over the next 60 days will be down from that of January, however there seems to be a good number of “real” buyers around this winter season.

All economic indicators, both national and local, are pointing to an “up year” regarding real estate sales. Nationally the trend is for increased sales but steady to slightly declining prices. I hope that the January figures mentioned above indicate we will see the increase in number of sales but that we will contradict the national trend and also see an increase in prices. Keeping my fingers crossed on that point!

Interest rates are holding steady as expected (at historic lows) and the upcoming presidential election should help to keep a stable (or better) market.

January New Letter

Doug's wrap up of 2011 and looking forward to the new year.
One of my favorite quotes for the New Year is: “Many people look forward to the New Year for a new start of old habits”…author unknown.

I wish you a wonderful and healthy 2012 where you attain your goals and as Oprah Winfrey once said, “Cheers to a New Year and another chance for us to get it right”.

Here are the “year end” numbers for 2011 compared to those of 2010 and 2009:

2011 2010 2009
# of residential sales 299 335 254
Average price $971,588 $1,083,745 $981,711
Median Price $575,000 $621,250 $557,500
Days on market 231 297 294

# of land sales 54 46 39
Average Price $770,867 $633,000 $508,000
Median Price $342,500 $380,000 $363,000
Days on market 261 420 455

# of condominiums 14 16 14
Average price $502,469 $425,331 $497,214
Median Price $501,250 $429,000 $367,500
Days on Market 170 376 302

The 2011 residential numbers show an 11% drop in # of sales, a 10% drop in average sales price, a 7% drop in median price and a 22% drop in number of days on market.

The 2011 land sales show positive signs in all categories. Yeah! Some good news for a change.

The 2011 condo sales have actually remained fairly constant over the 3 years. This is also good news.

These numbers are fairly consistent with what is expected as the real estate market will typically fluctuate once the “bottom” is reached. It appears that we reached the bottom of the market in 2009, saw a little reprieve in 2010 and then the current dip in 2011. This fluctuation is expected to continue for another 3 +/- years.

The New Year also brings a time to review the current market value of your property. I will be in contact with you soon to discuss your property and to review a current CMA.

All the best for the New Year.

Doug

Doug's October Musings

October has arrived but where is the autumn weather? October 1st was warm and balmy reaching almost 80 degrees! It was a good day for a swim.

Sales in September jumped to36 in number. This is a 50% jump from the number of sales in August 2011 and in comparison to August 2010; the number of sales are the same (37). The median sales price in August 2011 increased to $576,000 ($581,500 in Aug 2010) and the average sales price was $1,019,194 ($1.72M in July 2010). The average days on market are 240 (241 last year). These numbers show a welcomed increase in values and number of sales and the “under agreement” pipeline indicates that the next couple of months should also show a strong numbers of sales.

I included this month a list of all homes sold in your township so you can see specifically what is selling. Please let me know if you have any questions.

Interest rates continue to be historically low and will hopefully entice buyers to take advantage of what I see as a great opportunity to invest on the island. Five year ARM’s are available for as low as 2.5% and 30 year fixed as low as 3.99%. For specific information on all bank loans please consult with your preferred loan person as they can explain all the requirements for each loan.

Doug's September Thoughts

The beginning of September brings the end of summer. The August fireworks in Oak Bluffs were the best ever! Hurricane Irene came and gave us a little blow and rain. My thoughts and prayers go out to everyone inland that took the brunt of the storm.

September also brings cooler days, open parking spaces and the annual Striped Bass and Bluefish Derby. This month will also (hopefully) bring an influx of buyers looking to take advantage of the current market conditions. Real estate is the only business I know that sales slow down when prices are reduced. Go figure!

Sales in August increased to 23 in number. This is a 30% jump from the number of sales in July 2011 and in comparison to August 2010, the sales are the same (23). The median sales price in August 2011 decreased (for the 2nd month in a row) to $473,000 ( $634,750 in Aug 2010) and the average sales price was $543,833 ($1.72M in July 2010) . The average days on market are 254 (288 last year). Although these numbers show a significant decrease in values, the “under agreement” pipeline indicates a larger number of higher end properties will be closing in the fall.

Of the 23 sales in August, 7 were bank foreclosure related sales.

Again, as last month, let us compare the YTD (year to date) sales numbers. For YTD 2011, there have been 223 sales with an average price of $874,000 and a median price of $547,000. In comparison, for the same period 2010, there were 265 sales with an average price of $992,729 and a median price of $560,000. The average days on market are down to 250 compared to 315 in 2010; the only positive number in this month’s review.

Interest rates continue to be historically low and will hopefully entice buyers to take advantage of what I see as a great opportunity to invest on the island. Five year ARM’s are available for as low as 2.5%

Hopefully the world and national economy will stabilize, jobs will increase and we will see a renewed interest in island real estate.

RE/MAX Broker & Obama

At a recent town hall meeting a RE/MAX broker asked Obama about the state of Real Estate. Here is the exchange...



http://youtu.be/yyvA-uZNrVA

Doug's August Reflections

August 1, 2011

August is here! Unbelievable. This is the month where tourists flock to the island in search of the perfect beach day, a wonderful meal at their favorite restaurant (Outermost Inn is mine) or just a chance to relax.

For me, I also like to travel in August. This year I am heading to the Amazon rain forest in Brazil with my wife and son for some kayaking and hiking. Should be an adventure! While I am gone, Jennifer Knight from my office will be handling the day to day activities here.

Sales in July dropped to 16 in number (ouch!). In comparison, one year ago there were 44 sales in July, 2010. The median sales price in July 2011 dropped to $505,030 ($495,000 in July 2010) and the average sales price was $727,000($1.06M in July 2010) . The average days on market are 208 (234 last year). I find these numbers very concerning since sales predictions were supposed to be steady through 2011.

Since a month to month comparison of statistics or even comparing same period this year to same period last year show a sharp decline in sales, I decided to take a YTD (year to date) look at the numbers. For YTD 2011, there have been 198 sales with an average price of $913,000 and a median price of $550,000. In comparison, for the same period 2010, there were 242 sales with an average price of $923,000 and a median price of $554,000. So even though the number of sales is down 18% YTD, the prices are steady.

The inventory of homes for sale on island is still around 570 units. The total number of properties for sale including land, condos and commercial is 760. This is consistent with the past 3-4 months. Several years ago when the market was better, out inventory rarely reached 500 units.

Interest rates continue to be historically low and will hopefully entice buyers to take advantage of what I see as a great opportunity to invest on the island.

Hopefully the national economy will stabilize and we will see a renewed interest in island real estate.

Enjoy the rest of your summer and here’s hoping (fingers crossed) that a buyer for your property is in the near future.

According to CNN Money.com's Fortune section now is a great time to invest in real estate again. http://finance.fortune.cnn.com/2011/03/28/real-estate-its-time-to-buy-again/

Doug's Spring Reflections

Ahhh…. March, the month spring arrives and boy, do we deserve a nice one! The winter of 2011, specifically the snows in the northeast, will be remembered for a long time.

I write to you this month from the International RE/MAX conference in Las Vegas Nevada. This 4 day annual event brings together over 5,000 REMAX agents from 56 countries to study current real estate trends, interact and share ideas and see the newest “gadgets” available. I had dinner last night with a group from India that opened the first RE/MAX offices in that country just 2 years ago. Their market is booming!

There is some good news and some not so good news at the first day of the conference. The good news is that many indicators (nationwide) are suggesting an upswing in the economy. With consumer purchases up at Christmas time (first in 4 years), an increase in car sales (big ticket purchases) and a decrease in unemployment (now below 8.9% nationwide, 8.1% in the northeast), economists are seeing a renewed consumer confidence. This confidence will surely translate into more real estate purchases. The not so good news is that the foreclosure mess that has affected so many communities will not end in the near future. There are an estimated 7,000,000 (yes, million) homes still facing foreclosure over the next 4 years and these properties will saturate the market, thus buffering prices and confusing buyers. In some markets, these bank foreclosures and short sales are 70% of the market. Luckily for us, these type of “distressed sales” on the Vineyard is only about 12-13% of the market.

Island sales for February were down to 23 for the month with an average price of $646,644 and a median price of $515,000. These are both down from the past 3 months. This is typical for this time of the year since closings usually take 60-90 days from initial offer and the November/December market is traditionally a slow time.

Interest rates have been fluctuating as high as 5.25% for a 30 year rate but recently dropped below 5%. I believe interest rates will stay steady throughout the year.

Here’s hoping for a wonderful spring and a busy selling season.

Doug's Real Estate Thoughts For February

February 8, 2011

Happy Valentine’s Day! And here’s hoping you have been able to dig out of the never-ending snow that keeps pounding the northeast. Fortunately (or unfortunately according to some), the Vineyard has been spared the 16-20 inch snows that have been common “across the pond”. We have our share of 2-4 inch accumulations that melt and freeze into ice rinks in our driveways, but right now we are a balmy 40 degrees and all signs of a “white” winter are gone.

The market has been a little roller coaster like this winter as many buyers seem to be staying home and not traveling to the Vineyard for real estate shopping. But those who do travel here have been buying!

There were 27 sales in January with a median price of $650,000(up $100,000 from last January) and an average market time of 218 days (down from 285 a year ago)…both good signs! Of these 27 sales, 3 were bank related (foreclosure) sales and 4 sales were over $3 million dollars…one of which was the Cronkite estate that brought a whopping $11.3M!

There are presently 41 properties “under agreement” that will close in the next 60-90 days +/-. Current inventory is still high with approximately 500 properties for sale. This number will be increasing as we approach spring.

These statistics, once again, tell me that the real estate market on the Vineyard is stabilizing.

Vineyard Gazette on The State of Vineyard Real Estate

http://mvgazette.com/article.php?28870

Doug's Thoughts For The New Year

Wishing you a wonderful 2011 where you accomplish your goals and enjoy every day with enthusiasm and promise.

The “year end” numbers I predicted the last 2 months (mostly) came true. There were 337 residential units sold in 2010 compared to 270 in 2009. That is a 25% increase! The median price of $596,500 in 2010 is 8% over that of 2009. The only surprise to me is that days on market remained relatively constant at 299 . As you remember, my earlier prediction was that days on market would be reduced by 10%. I hope these statistics continue into 2011 and we see a continued stabilization, if not appreciation, in our real estate market.

The New Year also brings a time to review the current market value of your property. I will be emailing you, within the next week, an updated CMA that evaluates your property in relation to the market. Please let me know any questions or comments you might have after you review the report.

Interest rates have “ticked” up a little in the past quarter, although most 30 year fixed rates are still below 5%. The change in banking that is affecting the real estate market most is the “tightening” of banking requirements for buyers. In almost every transaction last year, I saw new documentation requests from loan underwriters, so patience is a definite virtue when waiting for the bank to approve a buyer’s loan.

Sunset

Sunset over Vineyard Haven from East Chop…AMAZING!!

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Doug's November Reflections

Halloween came and went, as did the beautiful full harvest moon of October. The beginning of November is always a quick reminder that winter is soon to arrive.

The sales statistics for “year to date” are encouraging in comparison to the same period in 2009. The total number of units sold so far this year is 324 compared to 238 in 2009. This total already surpasses the total number of sales in 2009! The average price is $979,000 compared to $935,000 in 2009 and the median price is $550,000 compared to $527,500 in 2009. Additionally the average days on market dropped to 308 from 337 in 2009.

There are presently 63 properties “under agreement” on the island.

All of this is good news and a strong indication that we hit the bottom of the market in 2009. Be aware, however, history tells us that once we hit the bottom of the “cycle”, we will stay there for about 3 years before seeing any significant increase in values.

Interest rates continue at historic low levels and should continue to help fuel the market. I anticipate sales for the remainder of 2010 to be steady and this will help for a strong winter/spring market on the island.

Doug's October Letter To Sellers

Happy October greetings from a cloudy, wet Martha’s Vineyard. I am not complaining, however, as we needed the rain.

First I need to make a correction from my September letter. Sales in August were incorrectly reported. There were 23 sales, not 12 as I reported so that is good news -- sales in August were up not down. September sales reported so far, total 15 with an average price of $1.25M and a median price of $675,000. The average days on market are down from 288 in August to 255 in September.

Properties showing under contract in LINK today number at 55, which is promising for a productive 4th quarter. The 4th quarter in 2009 was the strongest quarter last year…let’s hope for the same this year. Of these 55, 23 are over $1M with one topping the $10M mark, so the upper end of the market appears to be strong. One recent sale in Chilmark does, however, show that this current downturn in the market affects all prices ranges. A home along the south shore that sold in 2007 for $8.75M just sold for $5.4M last month.

Interest rates again are offered at historic low rates and continue to help buyers “get off the fence”. This trend is expected to continue through the remainder of the year which is contradictory to predictions from last spring. Just like TV weathermen, economic forecasters can be wrong!