Tag: Provincetown luxury homes

Categories
general info

2 Telegraph Hill Homes Under Contract.

Two beautiful houses atop  Telegraph  Hill have gone under contract in the last few weeks. Both have asking prices over $2M.  In the last 2 years only 5 properties have sold in Provincetown with prices over $2M. Four were on the water on Commercial Street and the other was on Telegraph Hill

9 Telegraph Hill which we have been marketing with an asking price of $2.295M is under contract. This is one of the most perfectly sited homes on the hill, hardly visible from the street and with expansive water views from most rooms. The house has 3 bedrooms and 3.5 baths, an incredibly large open living area with a giant fieldstone fireplace and a deck running the full length of the back of the house. The rear of the house is all glass and deck.

 

9 Telegraph living telescope  9 Telegraph Hill. List price $2.295M Pending.  9 Telegraph master bedroom 1

 

8 Telegraph Hill sits atop the Hill at its eastern tip with arguably the best views on the hill.  This is a 3 bedroom, 4 bath home of 3,510 square feet that has a listing price of $3.195M.  This property went under contract a few weeks ago and is being marketed by our good friends at Atlantic Bay Sothebys.

 

21304104_03

21304104_0721304104

 

 

 

 

 

Pretty heady stuff for the Provincetown market to have two similar and $2M+ properties sell in the same few weeks. And while these two properties are not representative of the entire market they do represent renewed interest and activity in this segment of the market.

Categories
general info

Buy Now?

One of my new favorite real estate blogs is KCM.  A great post below clearly illustrates the simple reasons that buying now may not be a bad idea. Don’t you love the perfect nuclear family pictured? They don’t look particularly happy. Just saying! I don’t normally post “buy now”, “sell now” articles but occasionally they organize information and provide a bit of national context to our own micro market here.

Buying a House: Is Now the Time?

by THE KCM CREW 

bored

The real estate community is often criticized for always seeming to have a Pollyanna attitude about the housing market. Many believe that the industry’s current call ‘to buy now’ is nothing more than a scare tactic with the sole purpose of creating more commissions for the industry. Let’s take a look at whether or not that advice was good advice over the last year.

The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. According to the most recent Case-Shiller Home Pricing Index, home values have risen over 10% in the last year. If we look at Freddie Mac’sWeekly Primary Mortgage Market Survey®, the 30 year mortgage rate has increased from 3.67% to 3.91% during that same period.

The table below compares the cost of the same exact house over the last twelve months:

difference

We can see that the advice to buy a year ago made complete financial sense.

What About Moving Forward?

Most experts are not only calling for prices to continue to rise but are also upgrading their projections as the housing market is showing strong signs of recovering.

Regarding interest rates, the 30 year mortgage rate has soared by over a half point already this year and many believe that the increases will continue. Even those trying to be the voice of reason on this issue are projecting higher rates. For example, Polyana da Costa, senior mortgage analyst at Bankrate.com said:

“Rates are unlikely to keep going up so quickly and should remain below 5 percent.”

Bottom Line

The next time a real estate professional says that now is the time to buy they may not be giving you a ‘sales pitch’. They may be giving you nothing but excellent advice.

 

Categories
general info

What $560K Gets You.

What $560,000 buys you in Boston’s Back Bay, the South End and in Provincetown.

298 Commonwealth Ave, Tandem pkg space, sold $560K
298 Commonwealth Ave, Tandem pkg space, sold $560K

$560,000 buys you a tandem parking space in Boston’s Back Bay.  This was all the news this past week.  You can just imagine what people in the Midwest, or really anywhere else thought when they saw this story.  That Bostonians are Bonkers? Well…everything is relative.  Someone wanted these tandem spots pretty badly, and they could afford $560,000 to buy them

 

 

 

 

 

54 W Vine St #A, asking $569K, 2B/3B, 1,248 sf
54 W Vine St #A, asking $569K, 2B/3B, 1,248 sf

54 W Vine Street #A in Provincetown’s West End is a wonderful 2 bedroom, 3 bathroom condo with parking.  It just went under contract with an asking price of $569K. This is the 3rd condo that has sold in the last 18 months in this very well run and attractive complex. This condo represents the best of the mid-market in town.

 

 

 

 

 

 

691 Mass Ave, #208, asking $570K. 1B/1B, 909 sf
691 Mass Ave, #208, asking $570K. 1B/1B, 909 sf

 

691 Massachusetts Ave is a one bedroom, one bath condo with an asking price of $570K. 691 Massachusetts Avenue is a newer condo building in Boston’s South End.

 

We all know that $560K for a parking space in the Back Bay is news. Parking is a rare commodity in the Back Bay and it certainly creates a new ceiling for parking space prices in Back Bay but doesn’t mean much for the market in general…other than adding a bit more confidence to the already very hot market.

Categories
general info

Mid-Market In Provincetown

The mid-market in Provincetown is the $400K to $800K price range.  This segment represented 45% of total sales in 2012…46% of condo sales of 166 and 39% of single family sales of 52…in other words it is where the action is. Below are 3 condos and 3 single family properties that sold in 2012. 40 Pleasant is a beautifully  renovated 2 bedroom condo in a 3 unit complex with wonderful outside space. 389 Commercial is a very special 1,384 square foot waterfront condo with vaulted ceilings and a huge  deck. 14 Meadow is a free standing condo that lives like a single family home. 3 distinctly different properties in the mid priced segment.

40 Pleasant St. 2/1, $500K
40 Pleasant St. 2/1, $500K
389 Commercial St.#6, 2/1, $575K
389 Commercial St.#6, 2/1, $575K
14 Meadow Rd. #16, $695K
14 Meadow Rd. #16, $695K

 

 

 

 

 

 

 

9 Center St. SF, 3/2, $650K
9 Center St.  SF,  3/2, $650K
290 Bradford St. 2/1, $490K
290 Bradford St. SF 2/1, $490K
8 Priscilla Alden 2/2, $800K
8 Priscilla Alden SF 2/2, $800K

 

 

 

 

 

 

 

 

Currently there are 56 properties on the market priced between $400K and $800K representing 33% of the total condo and single family properties available of 155. 

10 Washington St is a 3 bed 4 bath condo with 1,175 square feet.  145 Commercial St is in a beachfront complex in the West End. My favorite on market condo is  15 Cottage St. #9 on the pool at the Kensington Gardens complex. 1,710 sf, 3 bedrooms, separate dining room, chefs kitchen and 3 bedrooms for $594K.

The 3 single family’s shown represent some great values. 70 Race Point Rd is a 4 bedroom, 4 bath house with 2,736 square feet. 11 Willow Drive is s brand new 3 bedroom 3 bath house with 2,234 square feet . 1 Railroad Ave is a Provincetown gem and a value at $469K.

condos:

10 Washington St. 3/4, $709K
10 Washington St. 3/4, $709K
15 Cottage St #9, $594K
15 Cottage St #9, $594K
145 Commercial St #M3, $439K
145 Commercial St #M3, $439K

 

 

 

 

 

 

 

Some single family properties;

70 Race Point Rd. 4/4, $668k
70 Race Point Rd. SF, 4/4, $668k
11 Willow Dr. 3/3, $769K
11 Willow Dr. SF, 3/3, $769K
1 Railroad Ave. 2/3, $469K
1 Railroad Ave. SF,  2/3, $469K

 

 

 

 

 

 

 

 

Year to date 20 properties have sold between $400K and $800K, 11 condos and 9 single families. This represents 33% of the total sold of 60. As you can see a perfectly symmetrical market dynamic.  33% of inventory and 33% of sales.

Below are a few of these sold properties. 50 Harry Kemp Way is a spacious townhouse style 2 bedroom condo in an well established condo complex. 381 Commercial is a beachfront condo in the East End and 61  Harry Kemp Way is a magnificent new construction single family home finished with the highest quality finishes.

 

50 Harry Kemp Way, 2/2, $500K
50 Harry Kemp Way #3, 2/2, $500K
381 Commercial St. 2/2, $485K
381 Commercial St. #9,  2/2, $485K
21 Court St #4, 1/1, $435K
21 Court St #4, 1/1, $435K

 

 

 

 

 

 

 

262 Bradford St. SF, 3/2, $467K
262 Bradford St. SF, 3/2, $467K
8 Thistlemore Way, SF, 3/3, $600K
8 Thistlemore Way, SF, 3/3, $600K
61 Harry Kemp Way, 2/3, $781K
61 Harry Kemp Way, 2/3, $781K

 

 

 

 

 

 

 

 

What do these facts and figures tell you about the mid-market here in Provincetown? That it is the most active important segment in the market.  That in 2012 it was almost half of all sales in the market with the average condo in this segment selling for $539K, with 2 bedrooms, and 2 baths and 1,122 square feet. The average single family home sold for $621K, had 3 bedrooms and 2 baths and was 1,705 square feet.  As you can see from the assortment of properties shown above, the diversity of style, type, location and price in this segment is surprisingly diverse. I’ll keep reporting on interesting developments in the mid market and let you know my favorites as new properties come available.

Categories
analytics general info

Vacation Hotspots

Fun post by Scott from Boston.com Real Estate

HomeImage-Aerial_Provincetown

Posted by Scott Van Voorhis

Ever wonder where your neighbors are headed on vacation? If you live in Greater Boston, it’s a good bet they aren’t headed very far.

Trulia today is releasing its list of the top vacation home destinations for each major metro market, as well as nationally, based on a tally of searches on the real estate portal.

Of the top ten most popular vacation home destinations for buyers from Greater Boston, nine are on Cape Cod.

In fact, the only break from the pattern is Wells, Maine. Sorry New Hampshire, Vermont and Rhode Island, you are out of luck.

Let’s not get big heads here, though. Sure, we love the Cape, though I’d argue traffic and overdevelopment is close to wrecking the place. Just get off Route 6 in Hyannis and take a scenic drive down Route 28.

But the rest of America is not so enamored with our favorite vacation playground.

Only one Massachusetts zip code managed to make it onto Trulia’s list of the top 20 vacation home destinations across the country.

And that happens to be Nantucket, which ranks at a distant No. 20 in popularity.

The most popular vacation home destination in America, at least according to Trulia, is not Chatham or Provincetown, but rather Cape May in New Jersey, and specifically, Oceanwood, where the median price is $525,000.

Here’s Trulia list:

Where Bostonians Search for Vacation Homes

# ZIP Code Town    State         Median Asking Price
1 02649 Mashpee  MA             $419,900
2 02639 Dennisport MA            $224,900
3 02540 Falmouth MA              $549,950
4 02554 Nantucket MA             $1,799,999
5 02536 Teaticket   MA             $379,000
6 02633 South Chatham MA     $815,000
7 02657 Provincetown MA         $596,500
8 02631 Brewster MA               $439,000
9 02642 Eastham MA               $445,750
10 04090 Wells ME                  $256,670

 

Categories
analytics general info

$1M Plus Market In Provincetown. A Spring Preview

The $1,000,000 market in Provincetown is solid and active. In 2012 16 properties sold above $1M, 15 single family homes and 1 condo. These represent 7% of the total 218 condos and single family homes sold in 2012. As you can see below, these range in style, size and of course location. The average sales price was $1.575M, had 4 bedrooms and 3.25 baths with 2,250 square feet of living space. (6 of these properties are shown below.)

 

5 Telegraph Hill $1.15M
5 Telegraph Hill $2.15M
781 Commercial St $2.275M
781 Commercial St $2.275M
6 Winston Ave $1.8M
6 Winston Ave $1.8M

 

 

 

 

 

 

 

3 Atlantic Ave $1.065M
3 Atlantic Ave $1.065M
29 Commercial St $2.925M
29 Commercial St $2.925M
79 Commercial St $1.55M
79 Commercial St $1.55M

 

 

 

 

 

 

 

There are currently 157 condos and single family homes on the market, 31 of which are priced at $1M +, representing 23% of the available inventory. The average property above $1M is  asking $1.869M, has 4 bedrooms and 4.5 baths, with 2,763 square feet of living space. Of these available properties 32 are single family homes and 4 are condos. (6 of those properties are shown below)

58 Franklin St $1.059M
58 Franklin St $1.059M
29 Tremont St $1.195M
29 Tremont St $1.195M
8 Telegraph HIll $3.195M
8 Telegraph HIll $3.195M

 

 

 

 

 

 

 

10 R Commercial St 1.995M
10 R Commercial St 1.995M
21 Bradford St Ext #16 $1.249M
21 Bradford St Ext #16 $1.249M
75 Franklin St $1.349M
75 Franklin St $1.349M

 

 

 

 

 

 

 

 

2013 looks to be as strong or stronger. So far 7 properties have sold, 6 single family homes and 1 condo, and 4 properties are currently under contract. Considering the strong summer fall selling season is still to come this is good news for the $1M + market. (6 of the 7 properties that have sold so far this year are shown below)

 

7 Miller Hill $1.2M
7 Miller Hill $1.2M
13 Pilgrim Hts Rd $1.235M
13 Pilgrim Hts Rd $1.235M
7 Pleasant St $1.024M
7 Pleasant St $1.045M

 

 

 

 

 

 

 

53 Harry Kemp Way $1.075M
53 Harry Kemp Way $1.075M
9 Creek Rnd Hill $1.6M
9 Creek Rnd Hill $1.6M
572 Commercial St $2.265M
572 Commercial St $2.265M

 

 

 

 

 

 

 

In many markets the “high-end” or above $1M market is the most visible market. The same is true here in Provincetown. The trophy homes, the big waterfront properties, the East End and West End compounds all draw interest and gossip. But interestingly enough many of these homes are wonderful family and year round properties, very accessible and in fact well priced for the amount of house you get.

The interesting numbers are 7% and 23%. While available properties for sale above $1M represent 23% of the total, only 7% of the properties sold in 2012 were sold above $1M. what does this mean? That while the $1M + market is viable and strong, lots of properties do take a while to sell. We need to remember that the second home market in whatever price point we are talking about is not as fast paced and dramatic as the primary home market. For many this means a more relaxed buying and selling process for others it is frustrating.  Where do you fit?

Categories
analytics general info

Shadow Demand Outweighs Shadow Inventory

Very interesting post from Mike Simonsen at Altos Research. In essence he is saying that buyers who held back buying in a sluggish economy are now entering the market in a time of low inventory, creating additional demand, which becomes hard to satisfy.

Real Estate Shadow Demand Outweighs its Shadow Inventory

by MIKE SIMONSEN

Quit your yapping about how strong the real estate market is, Simonsen. It’s a fake rally. There is no actual demand.

That’s the bearish argument I’ve been hearing lately. I’m not buying it.

For years we’ve been watching the phenomenon of “Shadow Inventory” of potential homes that need to be sold, and looking for impact on the market. This set of underwater or distressed properties is now shrinking rapidly.  The number of homes with underwater mortgages fell by nearly two million last year. According to the Fed, home price gains of 10% will be enough to move 40% of underwater borrowers back above water. These home sellers are highly likely to buy another home in the same or comparable market, off setting new supply with new demand.

Meanwhile another phenomenon that emerged from the bubble burst has been developing, and it’s hit the market with full force. Shadow Demand. Demand for homes that went unsatisfied, primarily due to financial and economic uncertainty, that can now emerge as jobs recover and mortgages remain cheap.

Housing’s Shadow Demand

Let’s look at the source of new demand. Increased demand for housing comes from new “households.”

household formation

Cumulative Household formation surpluss/defecit relative to 5 year average (millions). Source: Federal Reserve Bank, Altos ResearchFrom 1997 through 2007, each year an average of 1.3 million new households were formed per year. Our population grows via immigration and kids maturing. These people need to  rent or buy homes, or they double up with friends and family. During the Great Recession, household formation was closer to 600,000 per year. Population growth continued at about the same pace but people didn’t move into homes of their own.  That means for the three years of 2008, 2009, 2010 we had “Shadow Demand” forming around 2 million potential homes that can’t wait to launch on their own.

In the chart above, you can see that households get formed during times of economic strength. People hide when the economy is bad.

Household formation in the five years of the housing bust was lower than any five year period since the 1960s.  This is the Shadow Demand and it’s now hitting the real estate market. These millions of potential buyers were waiting until they were financially stable and until the bargains arrived. In 2012, these conditions converged. In 2013 employment and recovery is stronger. Real estate demand is higher.

Despite all the risks in the US and global economies, the 2012 real estate market’s demand is a function of years of pent up purchases. After years of historic lows, this demand trends seems poised for a multi-year recovery.

 

Categories
analytics general info

Goode and Farmer Report – Provincetown, Truro, Wellfleet April 2013

Provincetown Truro and Wellfleet First Quarter Figures 2013

Coming off a banner year in 2012, where year-end sales surpassed industry expectations, we wouldn’t have been surprised at a more “normal” first quarter of 2013. Real estate sales did slow as winter activity was moderated by weekly snowstorms more than by any changes in market fundamentals. Sales were more aligned to 2011 than to 2012.

The average sale price for a single-family home in Provincetown was up 27% to $1.021M, but the number of sales was down 25% from 12 to 9 sales. Total dollar volume was about even with 1Q2012 at $9.2M and average days on market were even as well, at 189 days.

There were 16 condo sales in the first quarter, down from 29 last year. The average sales price was $367K, which was down 8% from 2012. The decrease in condo sales was evident, as buyers were not inclined to show up on snowy weekends to shop for real estate.

The continued decrease in inventory remains a factor as the number of properties for sale continues its decline to about 25% from the same period last year. There are currently 52 single-family homes available for sale in Provincetown with an average asking price of $1.373M. There are 102 condominiums available for sale with an average asking price of $476K.

In our year-end report for 2012, we mentioned the decrease in available homes for sale were beginning to build the case for spring 2013 being an opportune time for sellers who had been sitting on the sideline, to put their property on the market. The case has been made. Mortgage rates remain at historic lows and the buyer pool is growing. This evolving supply and demand dynamic in Provincetown will be the factor to watch moving forward in 2013

 

Ptown

 

Single-family home sales in Wellfleet and Truro were strong in the first quarter. In Truro, sales increased by 27% from 11 to 14. The average sales price decreased by 21% to $617K from $785, while the median sales price increased by 3% to $613K from $595K. Total sales volume remained flat at $8.6M.

Single-family home sales in Wellfleet increased 12% from 8 units to 9 units. The average sales price increased 3% to $510K from $496K, while the median sales price slipped 18% to $395K from $482K.

First quarter sales analysis can swing wildly on the outer Cape, as the numbers are relatively small and one sale plus or minus can move the percentages in a dramatic fashion. The first quarter is just a hint of what is to come and begins to outline the narrative for the full year ahead in real estate on the outer Cape.

 

Truro Wellfleet

 

In our wrap up we are going to repeat what we said in our 2012 year-end review. Real estate is back! And while we don’t want to be accused of having “irrational exuberance,” we continue to see buyer excitement that has not been seen for years. But, buyers do need to see more choices. Sellers are becoming more confident that this is the time to sell. These positive buyer and seller attitudes and the continuation of rock-bottom mortgage rates bode extremely well for 2013!

Please call or stop in if you are considering selling or if you are just curious as to what your home is worth. Our business philosophy is that the best-informed sellers and buyers are the happiest. And, that’s what we do best.

Categories
general info

Demand For Vacation Homes On Rise – NAR

From Realtor.com/blogs

781 boardwalk

More consumers are seeking the relaxation of getting away, as vacation-home sales rose 10.1% to 553,000 in 2012 from 502,000 in 2011, according to data from the National Association of Realtors.

When surveyed, buyers listed a number of reasons for purchasing a vacation home: 80% plan to utilize the property for vacations or family retreats, 27% intend to use it as a primary residence in the future, 23% hope to rent it to others and 23% saw the home as a good investment opportunity.

Conversely, investment-home sales dropped 2.1% to 1.21 million last year from 1.23 million in 2011. However, investment-home sales lingered well under a million during the market downturn, according to NAR.

Vacation-home sales equaled 11% of total transactions in 2012, which remained unchanged from 2011. The portion of investment sales, on the other hand, totaled only 24% in 2012, down from 27% in 2011.

“We had a strong stock market recovery, which helps more people in the prime ages for buying vacation homes. Attractively priced recreational property is also a big draw,” said NAR Chief Economist Lawrence Yun.

With the buzz of an investor-driven housing recovery going around, Yun agrees that investor presence continues to thrive.

“Investors have been very active in the market over the past two years, attracted mostly by discounted foreclosures that could be quickly turned into profitable rentals,” Yun said. “With rising prices and limited inventory, notably in the low price ranges, investors are likely to step back in coming years.”

In 2012, the median investment-home price was $115,000, a 15% jump from $100,000 in 2011. Median vacation-home prices saw an even greater increase, hitting $150,000 compared with $121,300 in 2011. This represents a greater number of more expensive recreational property sales in 2012, NAR notes.

In 2012 the median price for a condo sold in Provincetown was $399K, up 11% from 2011.  The median price for a single family home sold was $800K, up 40% from 2011. 

Investment-home buyers had a median age of 45, earned $85,700 and purchased a home that was considerably close to their primary residence. Of the investment buyers, 35% purchased more than one property.

“Property flipping modestly increased in in 2012,” Yun said. “However, this isn’t flipping in the sense of what took place during the housing boom. Rather, investors generally are renovating and improving properties before placing them back on the market to resell at a profit.”

Categories
analytics general info

Why Is Inventory So Low?

Excerpts taken from a great post by Mike Simonsen of Altos Research.

 Three Reasons Why Housing Inventory is So Low

 by MIKE SIMONSEN

There’s no question about it, the operative theme of the 2013 housing market isrestricted supply. Ever since the bubble burst in 2006, we’ve been hearing about the dangers of over supply, of the massive “shadow inventory” out there. Yet we’re living in a vastly different reality. There are 40% fewer homes on the market now than there have been during February in the last few years.

Percent of homes with Price ReductionsInventory of actively for sale homes. Single Family Homes. Altos 20-city (national) composite. Data as of February 22, 2013. Source: Altos Research

Mid-January typically marks the seasonal low of available housing inventory. The fewest homes are on the market after the holidays. But pretty quickly they start coming on the market to prepare for spring. Inventory gets added until the first week of July, when people start looking forward to the Autumn.

Last week we commented about the rising prices that have resulted from this restricted supply. Imagine what would happen to the price of oil if Saudi Arabia, Russia, The US, China, Iran, and Canada were all offline.  It’s a, ahem, crude analogy, because housing is less a commodity than oil. But the fact is, we’re facing unprecedented few homes available for sale.

Why is that? What happened to all this “Shadow Inventory” that was going to dump on to the market?

You can boil the low-inventory reality down to three primary factors:

1-Under-Construction

Since 2007, new housing starts have been anemic. The long-term average construction rates are about 1.5MM homes per year. In the last six years, we’ve averaged well under 1MM. And since 2009, the average is closer to 500,000. Meanwhile population and household formation keeps on trucking. The over-construction that happened in the bubble is a distant memory. See the chart to the right. Construction volume under the orange line are “undersupplied” conditions. The homebuilders imploded so profoundly after the bubble, that we haven’t had this few new homes being built since 1959.

Expect this trend to continue for several more years. It’s difficult to ramp up housing production quickly. And we’re a long way below normal.

Percent of homes with Price ReductionsInventory of actively for sale homes. Single Family Homes. Altos 20-city (national) composite. Data as of January, 2013. Source Census Bureau viathemortgagereports.com

2-The Reverse Shadow Inventory Dynamic

Rising home prices have led to fewer, not more, existing  homes coming on the market. You might call this, ironically, the “Reverse Shadow Inventory” dynamic.

When the Shadow Inventory meme emerged during the bubble, the bearish argument followed: As soon as home price tick back up, there are going to be millions of people (and banks) who want to unload. Therefore supply will rise and prices will fall again.

In actuality, it seems the psychology has been reversed: As prices have climbed, those who (still) own their underwater homes finally see light at the end of the tunnel. The longer they hold, the closer they are to recovery. Why sell now if you don’t have to? Maybe you’ll make it out alive!

Banks are acting similarly. The owners of underwater mortgages have no incentive to unload quickly. Their assets are appreciating. Furthermore, as home prices increase, fewer and fewer people are at risk of default. The Shadow is shrinking in the noon-day sunshine of rapidly re-inflating home values.

3-Government Policy

Finally, it is no coincidence that essentially all housing policy, all programs, laws, and incentives have been focused on stimulating demand and restricting supply. The Fed is aggressively keeping interest rates low. HARP, HAMP and related mortgage crisis programs are designed to keep people in their homes. They have been successful. Politically, it’s near impossible to institute a program that might help home buyers. For whatever reason, the bureaucrats are much more fond of home owners. That’s unlikely to change.

We’re in a hangover of short supply after the burst bubble. Low new construction, low incentive for existing homes to sell, and a government that wants people to stay put. Like a good hangover, these are long, slow, painful conditions.  We’ll ease slowly out of the fog in the next few seasonal cycles.