Nearly half of all Cape Cod home listings sold for more than the asking price last month, as high demand and little inventory continue heading into the spring and summer markets.
Low inventory levels continue to drive up prices. According to the Cape Cod & Islands Association of Realtors’ latest data, 43% of all March transactions closed above asking price, compared with 11% in March 2020 and 9.5% in March of 2019.
Additionally, the median sales price of a single-family home in Barnstable County set a new record high in the region, rising to $653,500. The median sales price for condominiums was $339,500.
The imbalance between supply and demand on the Cape is a concern for the future of home affordability, according to Ryan Castle, chief executive officer of the Cape Cod & Islands Association of Realtors.
“Quite simply, we need all hands on deck to create more inventory on the market,” Castle said in a press release. “The housing market for buyers is extremely challenging and it relates back to decades of lack of housing production and those who are choosing to keep Cape Cod as their permanent home.”
New single-family home and condominium listings last month were down 18% and 19.1%, respectively, from March 2020. At the end of last month, there were 346 single-family homes and 131 condominiums for sale on the Cape and Islands compared to 1,567 single-family homes and 446 condos a year ago, a decrease of 77.9% and 70.6%, respectively.
“There is a perilously low number of homes for sale in the market. We were worried last year when homes for sale dipped below 2,000, and to be at 346 single-family homes for sale is simply astonishing,” Castle said.
March also saw a decrease in total days on market since last year. Single-family homes dropped 36.7% from 120 days in 2020 to 76 days. Condominiums decreased 23.8%, dropping from 101 days to 77.
Pending sales at the end of last month increased 21.3% for single-family homes and 37.8% for condominiums.