PROVINCETOWN, TRURO AND WELLFLEET
Provincetown and the entire Outer Cape had a remarkable year in real estate. Remarkable in many ways – both good and bad. Once again, it was an unprecedented year as we dealt with the continued market effects of the pandemic. With demand continuing to outstrip inventory, overall market results surprised even those of us who have experienced many ups and downs in the real estate market.
We are in a classic low supply and high demand dynamic with a very limited amount of available inventory. Added to this is the profound lack of buildable land available to construct additional dwelling units. In other words, a perfect storm of challenges exists as we are about to enter the 2022 spring selling season on the Outer Cape.
In Provincetown, unit sales were down in every category and sale prices were up! Condominium sales were down 22% from 193 to 151. Sale prices were up 10% from $667K to $734K. And astonishingly, 30% of those sales sold for over the asking price.
This does mean though that 100 units – or 70% of sales – did sell at or below asking. This provides some good news and some terrific opportunities for buyers as we see many mid-market properties are selling at or below asking prices.
There are only 21 condominiums on the market listed in MLS as of January 3rd with an average asking price of $1.03M. In the old normal, there were 40-70 condos on the market at any given time. This represents only 30 days of inventory available for sale.
Single-family home sales were flat with 53 sales compared to 52 sales last year, and average sales price increased 30% from $1.44M to $1.87M. However, 34% of these single-family homes sold above asking.
There are only nine single-family properties on the market now with an average asking price of $3.78M. Three of these are priced above $5M skewing the averages higher. There are no properties on the market priced between $1M and $2M which is the most popular price point for single-family homes. In balanced markets, there are usually 25-40 single-family homes offered on the market at any given time.
TRURO AND WELLFLEET
In Truro and Wellfleet, the lack of inventory is even more severe than in Provincetown.
The average single-family sales price in Truro was up 34% from $928K to $1.244M. Sales were down 21% to 64 from 81. There are only three single-family properties on the market with an average asking price of $3.068M. Again, this is skewed up by one of the three being priced at $4.6M. These three units of inventory represent a 20-day supply!
Truro condominium sales were higher – 50 sold this year vs. 39 last year. The average sale price increased 5% to $385K from $366K. There are only two condos on the market with an average asking price of $853K.
In Wellfleet, the average sales price of single-family homes was up 18% to $936K from $795K. Sales were down 14% to 74 this year from 86 last year. Currently, there are only three single-family properties on the market in Wellfleet with an average asking price is $1.26M.
AS WE END 2021 AND BEGIN A NEW YEAR
As we end 2021 on the Outer Cape, we see that average sales prices were up and the number of units sold was down – in all categories and in all three towns, except for condo sales in Truro. But, buyer demand for Cape property, and specifically Outer Cape property, remains extremely high. This historic lack of inventory was caused by the surge in sales that started in May and depleted available inventory which has not been replenished. The upward pressure on prices caused by this increased demand and lack of inventory cannot help but effect sales in 2022.
As we begin the New Year, we hope you are staying safe and remaining healthy wherever you are during this off-season. We are committed to providing you with the safest means available to view, purchase and sell real estate on the Outer Cape. We have learned to do business safely and comfortably during Covid, while still providing the expected high level of service and attention you require. Our business philosophy has always been that the best-informed buyers and sellers are the most satisfied with their results.
Watch for interesting stories in your email and on social media at jon.goode.com. We look forward to seeing you soon.